Date to be Launched: Yet to be confirmed
Links: Prospectus
Investment Strategy:
GRV is an actively-managed ETF planned by AdvisorShares that looks to beat the MSCI World Index while have little correlation with the index. The fund takes operates by taking long and short positions in ETFs representing different sectors, regions, countries and styles, in order to benefit from relative outperformance. The fund’s sub-advisor, HTE Asset Management, maintains an equal amount long and short dollar exposure, hence being beta-neutral and minimizing directional influences of the market. However, in directional markets, GRV may take an additional 50% long or short exposure on top of its core market-neutral long/short portfolio, in order to generate additional profits. HTE looks to implement this directional overlay using liquid future contracts on major equity indices.
Portfolio Managers:
HTE Asset Management manages in excess of $170 million in assets and is based out of Colorado Springs. The portfolio is managed by:
Jason D. Huntley, Founder – Jason Huntley is the Founder of HTE, and also the Founder and Managing Partner of HTE Asset Management, LLC. Mr. Huntley founded HTE in 1997 after spending five years advising affluent families and institutional clients for boutique firms in California and Colorado.
David A. Houle, Director of Research – David Houle works directly with Mr. Huntley to oversee strategy development, trading and risk management, which he has done since joining the firm in August 2002.
Elliott J. Orsillo – Elliott Orsillo joined HTE in October 2009 after working for six years as a portfolio manager at Russell Investments and a financial analyst for Southern California Edison
Gregory L. Thatcher – Gregory Thatcher joined HTE in April 2000 after working for nearly 15 years in the brokerage industry with Piper Jaffray and Stifel, Nicolaus & Company.
The Numbers:
Expense Ratio – Unspecified
Analysis:
Positives –
- GRV will be the first Active ETF in the US to employ a hedge-fund style, relative value strategy that is generally market neutral. Such a strategy will interest sophisticated investors, both retail and institutional, that previously only had hedge-funds as options to access such a strategy.
Negatives –
- By utilizing other ETFs to implement its long-short strategy, GRV might be layering on expenses as it will have to factor in as costs the expense ratios of the underlying ETFs that invests in. This will very likely lead to an above average expense ratio for the fund.
Disclosure: No positions in above-mentioned names.
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