ETF portfolio manager tied to selloff


Chicago-based Good Harbor Financial is among the largest ETF portfolio managers and the company in May began to rebalance its $11B U.S. Tactical Core Strategy twice a month instead of once - today marks the first mid-month trade for the portfolio, reports the WSJ.

Good Harbor's main strategy today, says the Journal, looked to be selling small caps as well as two ETFs tied to the S&P 500 (SPY -0.7%), and volume spiked in the iShares Russell 2000 ETF (IWM -1.6%), the ProShares Ultra Russell 2000 (UWM -3%), the iShares Core S&P 500 ETF (IVV -0.7%) and the ProShares Ultra S&P 500 (SSO -1.5%).

Good Harbors was the largest single holder of three of those funds as of the end of March, and the 2nd largest holder of the fourth.

As it sold the equity ETFs, Good Harbors appeared to be buying two mid-to-long-dated Treasury bond ETFs, the iShares 7-10 Year Treasury Bond Fund (IEF +0.3%) and the ProShares Ultra 7-10 Year Treasury ETF (UST +0.7%), with both having volumes many multiples higher than normal.

Good Harbors was also a seller of small caps and a buyer of Treasurys in early May, says the Journal, which earlier this year reported traders growing accustomed to waiting for the firm's monthly rebalance.

ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, DWAS, SAA, VTWO, JKL, RZV, SLYG, SLYV, VIOO, SDD, SBB, RZG, JKJ, RSCO, VTWG, UKK, VIOG, TILT, FYX, FNDA, VIOV, XSLV, FYT, SKK, JKK, EWRS, TWOK, PXSV, VTWV, SMLV, UVT, SJH, PXSC, IESM, FYC, VLU, PXSG

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Comments (3)
  • LST
    , contributor
    Comments (88) | Send Message
     
    Good Harbor seems to be like your average hedge fund these days - playing the momentum trade, but always late. According to this post they are selling small cap ETF's and buying Treasury ETF's. Maybe a little late? Does anybody know what their performance has been like?
    20 May 2014, 04:48 PM Reply Like
  • J N King
    , contributor
    Comments (32) | Send Message
     
    They have been awesome over the last few years. 2014 has not been good. I believe they are down over 10% YTD
    21 May 2014, 10:29 AM Reply Like
  • jakerobbins
    , contributor
    Comments (11) | Send Message
     
    Looks like trouble for $SPY, all money is in levered vehicles.

     

    $FB may crash $45 support by July. Consider 40 $50 puts (.14).

     

    You can see a hangman top form the last 6-7 months for $FB.

     

    S&P has significant support at $1740, hard support at $1570.

     

    $QQQ should see 30% drop to $62.5, buy 30 $78 puts (.19).
    21 May 2014, 09:36 PM Reply Like
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