TYSONS CORNER, Va., Dec. 9, 2010 /PRNewswire/ -- Following the recent turmoil in the U.S. stock market, investors have been searching for a better way to invest. Spoke funds have emerged as a solution to the problems inherent with mutual funds, such as lack of transparency and real growth. Using the spoke fund model and decades' worth of investment strategy as a basis, the Rothe Financial Group created the Praxis Fund to offer clients at all wealth levels the ability to invest in the stock market the way large pensions and institutions have for years.
"A typical mutual fund's investment strategy is limited by its prospectus - which was most likely written during a bull market," says Praxis Fund manager John Rothe. "A spoke fund is flexible. We can move into safe haven investments when necessary and then re-invest to maximize growth when the markets are rebounding. This ability to adapt to changing market conditions is what makes spoke funds so appealing."
In a spoke fund, each investor's account is held separately, but actively managed as a group. When the manager of the spoke fund purchases a security, the same security is bought in all the separate accounts at the same time. This allows quick action on all accounts when market conditions are ripe for growth, and even quicker conversions to cash or bonds when markets pull back.
"Today's stock market is similar to the market between 1966 and 1982," Rothe explains. "Lots of up and down movement, but no real long-term growth. The spoke fund concept allows us to move investments into the strongest sectors of the economy while avoiding the weakest - something most mutual funds are unable to do."
While most mutual fund managers do not invest in their own fund, spoke fund managers typically invest a large portion of their net worth in the fund. Investors prefer this approach as they feel the portfolio manager will have his or her own best interests - and therefore, every investor's interests - at heart when managing the portfolio.
The Praxis Fund is open to U.S. investors with a minimum account size of $25,000. For more information, visit http://www.praxis-fund.com.
The Praxis Fund is managed by John Rothe, President and Chief Investment Officer of the Rothe Financial Group. The Rothe Financial Group was founded in 2006 to provide institutional-style investment management to individual investors. Prior to starting the firm, John was Vice President & OMEGA Portfolio Manager with Oppenheimer & Co., and began his career at Morgan Stanley where he served as Vice President-Investments.
Contact: John Rothe, 703-349-6327, http://www.praxis-fund.com
SOURCE Rothe Financial Group