Abstract: A method of managing risk in an investment fund is implemented on a computer based system. The method includes (a) determining a primary investment in accordance with a primary investment objective; (b) determining a secondary investment objective that is a financial opposite of the primary investment objective; (c) determining secondary investment in accordance with the secondary investment objective; (d) performing a rebalancing cycle having (i) at a first point, (1) calculating a net asset value of the investment pair according to formula EQ.NAV=(EQ.primary+EQ.secondary); (2) calculating a nominal net asset value according to formula NN.NAV=(HU.primary*PI.market price+EQ.secondary) (3) calculating an actual leverage factor according to formula LF.actual=(NN.NAV/EQ.NAV); (ii) at a second point calculating by a computer of a rebalance trade of the primary investment according to formula RBTR=(EQ.NAV*LF.target?NN.NAV).