Date Launched: Oct 2, 2009
Links: Website, Prospectus, White Paper
Investment Strategy:
(RPX: 26.01 0.00%) is the second of a group of actively-managed Grail ETFs that invests at least 80% of its net assets in equities that RiverPark, the sub-advisor, believe to have above-average growth prospects in order to achieve long-term capital appreciation for the fund. RiverPark utilizes a fundamental approach to stock selection and buys stocks with the strongest growth prospects and attractive valuations. They identify industries benefiting from long-term secular changes in the economy and look for companies in those industries with sustainable competitive advantages and strong barriers to entry. The fund is allowed to invest a 100% in cash for defensive purposes in times of market stress. For performance comparison, the funds are benchmarked to the S&P500 Index.
Portfolio Managers:
RiverPark, the sub-advisors for RPX, provide day-to-day portfolio management services for the fund. RPX is managed by the following:
Mitchell Rubin, Portfolio Manager – Mitchell Rubin is the Chief Investment Officer of RiverPark and is a general partner of RiverPark Partners, a long/short equity fund. He held several executive positions previously at Baron Funds.
The Numbers:
Expense Ratio – Capped at 0.89% till Aug 31, 2010 (by contractual agreement)
Average Bid-Ask Ratio – n/a
Average Volume – 2,117 shares
What’s special about it?
1. The sub-advisors are given a relatively open leash and are allowed to buy companies of any market capitalization, in any industry and can also buy ADRs of foreign companies, listed in the US.
Analysis:
Positives –
- Mitchell Rubin brings with him a strong reputation and a wealth of experience to RPX, having managed several different mutual funds for Baron Funds prior to this.
Negatives –
- After being in the market for 4 months now, RPX has attracted hardly any investor interest. Being one of the pioneers in the Active ETF space, alongside PowerShares, has not helped them at all and as a result RPX still only has a market capitalization of $3.99 million. And the lack of liquidity in RPX shares discourages investors even more, with hardly any volume to support trading activity.
Performance to date vs S&P500 Index:
Disclosure: No positions in above-mentioned names
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