DirexionFunds, known for leveraged ETFs, dabbles into the passive investing alternative space.

On September 26, Direxion, a Boston-based provider of notably mutual funds, and leveraged ETFs, announced the appointment of John Cadigan as managing director and national sales manager. Cadigan will oversee the development and implementation of the firm’s internal and external alternative strategy sales initiatives, as well as overseeing national accounts.

DirexionFund and DirexionShares are advised by Rafferty Asset Management.

Cadigan’s post shortly comes after the recent addition of Ed Egilinsky as head of alternative investments, highlighting “the firm’s commitment to delivering buy-and-hold alternative investment products that investors increasingly demand,” according to Andy O’Rourke, chief marketing officer at Direxion.

“We’re committed to the alternative space because there is an area for room for growth. Investors need downside protection, and we felt that we had room to bring in good, seasoned professionals in that space to lead that change,” O’Rourke said.

O’Rourke noted that the firm’s strengths have thus been focused on its leveraged ETF offerings, which include leveraged small cap, gold miners, natural gas, retail, financials and an array of geographically-focused products.

Yet, due to the “large amount of assets out there, we’ve focused on building out strong products for the alternative mutual fund space,” according to O’Rourke.

Examples are the Direxion Commodity Trends Strategy Fund—a diversified long/short commodity fund that focuses on provides investors a way to potentially capitalize on the momentum of the commodity futures market.

O’Rourke also highlighted the Direxion Long/Short Global IPO (Initial Public Offering) Fund – a dynamic IPO fund where investors can take advantage of the expected cyclical behavior through use of a long/short strategy that attempts to benefits from both upward and downward trends in selected IPOs.

“For Direxion, alternative mutual funds are tools to help manage volatility and risk without sacrificing performance and used to hedge portfolio positions or seek profits from cyclical upward or downward market movements.”