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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
Comments (3)
  • LST
    , contributor
    Comments (23) | 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, 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, 10:29 AM Reply Like
  • jakerobbins
    , contributor
    Comments (10) | 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, 09:36 PM Reply Like
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