Direxion Funds, the recently rebranded Potomac Funds, is renaming and changing the investment objective of several existing funds. Direxion recently launched an overhaul that includes the debut of more than 30 funds and the use of greater leverage (www.fundaction.com, 5/8).

Dan O'Neill, president and chief investment officer, said the firm is adding leverage as the markets in recent years have become less volatile. The increase in leverage magnifies smaller market moves. "You'll find lowered volatility in the S&P500 and the Dow. We felt like it was appropriate to give advisors a little more volatility in the product," he said.

Direxion is renaming and adding leverage to the Small Cap Plus Fund, which has a 1.25 beta. The new name is Small Cap Bull 2.5X Fund to reflect its new beta of 2.5. All the names will include the "X" to indicate that they have a direction and a number to indicate the amount of leverage they use. Direxion is also renaming the Small Cap Short Fund (-2 beta) to the Small Cap Bear 2.5X Fund with a ­2.5 beta. The 10 Year Plus Fund with a 2.0 beta is now the 10 Year Note Bull 2.5X Fund and the Contra Bond Fund with a ­2 beta is now the 10-Year Note Bear 2.5X Fund.