Baltimore Sun – Rydex Investments, a Rockville mutual fund company, may merge its SPhinX Fund into another fund after discovering that underlying assets have been frozen in the wake of the collapse of commodity broker Refco Inc.
The independent board of the SPhinX fund, a basket of hedge funds, is expected to vote this month on the rollover into the Rydex Absolute Return Strategies Fund. If approved by the board, the plan would be put to investors for a vote in February, said Jeff Joseph, managing director of the alternative investment group at Rydex.
The SPhinX fund became embroiled in the Refco scandal through its affiliation with PlusFunds Group Inc., which sponsored investment vehicles that were used by the fund and also had accounts that were held by Refco affiliates.
