Icon Launches 'Flagship' Fund - TheStreet

Fund shops usually start out with a flagship fund and then add niche funds.

Icon Funds

is doing it the other way around.

The modest Englewood, Colo.-based fund firm and private account manager has nine U.S. sector funds, three foreign regional funds and a short-term bond fund. On Monday it announced the launch of its "flagship," the

Icon

fund.

The no-load fund will practice a sector rotation strategy -- essentially trying to emphasize or overweight stocks in top sectors or industries at any given time. Chief Investment Officer Craig Callahan will hold the reins, using quantitative models to identify sectors that might be undervalued and poised to appreciate.

Callahan has run the

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Icon Financial and

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Icon Consumer Discretionary funds since their inceptions in 1997 with mixed results. The Financial fund's 8.5% three-year annualized return trails the

S&P 500

and 58% of the fund's financial-sector peers, according to

Morningstar

. The Consumer Discretionary fund averages a 6.3% loss over the last three years.

The fund's Class I shares are expected to have a 1.45% expense ratio and Class C shares' annual expenses are expected to be 2.2%. The average U.S. stock fund carries a 1.37% expense ratio.