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Alex Potenza Comment On Regulatory Notice 22-08

Alex Potenza
N/A

Comments:
I truly believe there is a place in ones portfolio for leveraged and inverse funds. In fact, if used correctly, the can minimize the risk in a portfolio. I've used inverse funds as a short term hedge during the Covid crash of 2021 and during the recent market correction. By investing 10-20% of my portfolio in these inverse funds, I was able to reduce volatility and manage risk.
I'm fully aware, as I believe most investors are, that these are short term instruments and should not be held long term. Most hedge funds and institutions can implement complex hedging strategies. These strategies aren't accessible to the majority of investors. The inverse and leveraged funds are the only way for the average investor to participate in some of these strategies. I strongly urge you not to restrict our ability to access these funds. The appropriate measure would require the investment firms to provide educations and mandatory disclosures, which I believe most already do.

Thank you,
Alex Potenza