Tue, Feb. 23, 3:55 PM
- According to Goldman Sachs,, the average hedge fund had 68% of its long funds in their top 10 holdings heading into 2016 - that's the highest on record.
- The FANG names - Facebook, Amazon, Netflix, and Alphabet - represented a full 3.5% of total hedge fund stock holdings at year-end (up from 1.5% a year earlier). While Facebook has managed to stay flat in 2016, the other three are down sizable amounts.
- Still, the average hedge fund is down just 4% YTD - that's 200 basis points better than the S&P 500.
- ETFs: GURU, IBLN, ALFA, CSM, BTAL, VALX, CHEP, GURI, RALS, GURX, FTLS, CSLS, LALT, ACTX, SIZ, QMN, DIVA
Nov. 24, 2015, 12:46 PM
- The Global X Guru ETF (NYSEARCA:GURU) - which tracks hedge funds' top holdings via 13F filings - is lower by 10% since the start of August, nearly 900 basis points worse than the S&P 500.
- The AlphaClone Alternative Alpha ETF (NYSEARCA:ALFA) - which tracks performance of U.S. stocks to which hedge funds and institutional investors have disclosed "significant" exposure - is down a whopping 19% over the same period.
- It's the "hedge fund hotel" effect, and those names popular with the Greenwich crowd - think Valeant, Community Health Systems, Ally Financial - are among those which have been especially punished in the last four months.
- Goldman tracks these favorites, and they outperformed the market from 2012 to 2014, but this year they've trailed the S&P 500 by 500 basis points.
- Previously: Rough time for hedge fund hotels (Nov. 23)
- ETFs: VQT, PHDG, VIXH, QAI, VSPY, MCRO, SPXH, HDG, VQTS, QEH, ALTS, TRSK, MULT, HHDG, DRVN, HHFR
Jun. 1, 2015, 3:18 PM
- Dallas-based Highland Capital today debuts the Highland HFR Global ETF (NYSEARCA:HHFR), the Highland HFR Event Driven ETF (NYSEARCA:DRVN), and the Highland HFR Equity Hedge ETF (NYSEARCA:HHDG) - all tracking indexes created by Hedge Fund Research.
- Each fund charges a management fee of 0.85%.
- Other hedge fund replicating ETFs include the IQ Merger Arbitrage ETF (NYSEARCA:MNA), the AlphaClone Alternative Alpha ETF (NYSEARCA:ALFA), and the Global X Guru Index (NYSEARCA:GURU).
- Source: Barron's
Jan. 22, 2015, 12:55 PM
- The Hedged Dividend Income ETF (NYSEARCA:DIVA) provides investors with high dividend income, along with the secondary goal of capital appreciation.
- "Our exemptive relief with the SEC allows us to hedge and de-risk via an index-based, long/short strategy," said Bill DeRoche, Chief Investment Officer and portfolio manager of DIVA.
- Other long/short and 130/30 ETFs: ALFA, CSM, AGLS, CSLS, LALT, FTLS, RALS
Sep. 9, 2014, 1:58 PM
- The First Trust Long/Short Equity ETF (NYSEARCA:FTLS) is an actively managed fund that invests in other U.S.-listed equity securities for foreign and domestic firms, including U.S.-listed ETFs that cover domestic and international markets.
- According to prospectus, "the overall portfolio, under normal market conditions, will be 90 to 100% invested in long positions and 0% to 50% invested in short positions."
- FTLS will charge 99 basis points, just 4 more than the largest fund in the long/short space, the Proshares RAFI Long/Short (NYSEARCA:RALS).
- Other long/short ETFs: ALFA, CSM, AGLS, CSLS, LALT
May 14, 2014, 2:25 PM
- The PowerShares Multi-Strategy Alternative Portfolio (LALT) is expected to launch on May 29th and is supported by a partnership between Invesco and Morgan Stanley.
- As described by Dan Draper, Invesco PowerShares Managing Director of Global ETFs: “One of the primary goals for investors that use alternative strategies is to minimize exposure to equity and bond markets, and to achieve better risk-adjusted returns compared to portfolios consisting only of traditional asset classes. LALT is an actively managed long-short strategy that seeks to provide efficient exposure to a broad mix of alternative-asset classes.”
- Other long-short ETFs: ALFA, CSM, RALS, AGLS, CSLS
May 1, 2014, 1:09 PM
- The Etracs Fisher-Gartman Risk Off ETF (OFF) and the Etracs Fisher-Gartman Risk On ETF (ONN) will be called for redemption on May 9th after roughly 2.5 years of trading.
- OFF provides inverse exposure to an index of long positions in risk-on instruments and short positions in risk-off instruments; ONN tracks an index with 150% in long positions in securities that gain in a strong market and 50% in short positions expected to fall in a strong market.
- UBS gave no further details on the reason for redemption in the NYSE communique.
- Other long/short ETFs: ALFA, CSM, RALS, AGLS, CSLS
Mar. 10, 2014, 10:07 AM
- To those who remember the risk on/risk off days of 2011 when the entire universe of assets seemingly moved together based on the utterings of some politician here or across the pond, today is quite a different matter. The instances of days in which more than 90% of S&P 500 stocks move together have all but vanished late last year and this year.
- The 65-day average correlation of stocks fell to 0.52% in January vs. an average of 0.63% between 2009 and 2013 (it rose as high as 0.84% late in 2011).
- Investors have responded by moving money into so-called actively managed strategies, with those funds seeing inflows of $1.3B this year on top of $9.8B in 2013. It's a small amount, but contrasts with $360B pulled out of such funds between 2009-2012.
- Related ETFs: GURU, ALFA, CSM, QAI, ONN, OFF, BTAL, MCRO, CHEP, RALS, HDG, QEH, AGLS, CSLS, SIZ, QMN, CSMN
May 24, 2013, 9:52 AMAUM at the year-old Global X Top Guru Holdings ETF (GURU) are up more than 1,000% YTD as its strong performance (up more than 40% since inception vs. about 30% for the SPY) lures investors. The fund invests by studying 13F filings and rebalances quarterly. Other funds based on hedge fund positions - ALFA and QAI - are also trailing GURU. | May 24, 2013, 9:52 AM
Feb. 8, 2013, 3:23 PM
ProShares lowered fees yesterday on its Credit Suisse 130/30 ETF (CSM) to 0.45% from an earlier 0.95%. ProShares is the first to cut fees for ETFs in this class, where investors are looking to outperform large-cap indexes. The fund's also getting a truer name (ProShares Large Cap Core Plus), but no change to holdings and strategy. Competitors: JFT, HDG, ALFA, GURU| Feb. 8, 2013, 3:23 PM