Bluegrass Portfolio Management, LLC introduces Rydex Mutual Funds as strategic holdings.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 5, 2005 -- Registered investment Advisor Bluegrass Portfolio Management, LLC announced today that the company will begin utilizing Rydex mutual funds in their managed accounts. The investment policy committee feels that their sector-based and style-based strategies will be well served by Rydex funds, which were designed with the same strategies in mind. The addition of the funds as potential holdings will also provide stability and consistency for those clients who wish to avoid the volatility associated with individual equities.

Bluegrass Portfolio Management is known for managing stock portfolios, and had used stocks almost exclusively in the early stages of the company's growth. The stock selections were often made with sectors and styles being the underlying rationale. For instance, when health care stocks are strong, the advisor would look to an industry leader such as Universal Health Services Inc. (NYSE: UHS) or Johnson & Johnson (NYSE: JNJ). Now, for those clients who desire it, the advisor would now choose the Rydex Health Care Fund (RYHIX).

The other attraction to Rydex funds was the availability of leveraged funds, and inverse funds. Leveraged funds are simply index funds that move in tandem with a particular index, but change by a far greater degree. The Titan 500 fund (RYTNX) - one of the company's bigger funds - is such a fund. Its daily value is designed to change by twice as much as the S&P 500 index. Chief Analyst James Brumley describes these holdings as 'index funds on steroids.' He and the policy committee conclude that these types of choices encourage longer-term strategies, but still offer an opportunity to beat the market, rather than just match it. Inverse funds offer a way to profit from a falling market. Like leveraged funds, inverse funds move by a larger factor than the underlying indexes, but an inverse fund moves in the opposite direction of the index. Brumley feels 'this is an important option for all investors who don't need or want to sell stocks short, or for those who don't want to utilize complex option trading to defend their portfolios from market losses.' He further adds 'it's only a matter of time before stocks start a major decline, but investors don't have to be powerless like they were in 2000 when it happens this time. Selling a falling stock is the right thing to do, but for some clients, they can't wait for the market to recover to start making money again, especially if it's a prolonged bear market like the last one was. Inverse funds add an important weapon to the arsenal, and that's the ability to grow portfolios even while stocks are sinking.'

Bluegrass Portfolio Management, LLC manages brokerage and retirement accounts for investors seeking better than average returns, while only assuming moderate risk. Their primary holdings are individual equities, and now, funds or ETFs are used to strategically diversify portfolios.