Fri, Mar. 18, 3:19 AM
- More hedge funds closed their doors in 2015 than at any time since the financial crisis, as turbulent markets dragged down the industry's performance.
- According to data from Hedge Fund Research, last year was the worst period for liquidations since 2009, with 979 funds closing, up from 864 in 2014.
- The fourth quarter of 2015 also saw the fewest new hedge funds starting up since 2009, with just 183 openings compared to 269 in the third quarter.
- Previously: More troubles for Bill Ackman (Mar. 18 2016)
- ETFs: QAI, MCRO, HDG, ALTS, QEH, MULT, HHDG, DRVN, HHFR
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
Oct. 10, 2014, 1:38 PM
- The ProShares Morningstar Alternatives Solution ETF (NYSEARCA:ALTS), the first ETF based on a Morningstar (NASDAQ:MORN) index comprising a broad range of alternative strategies, began trading yesterday.
- The index selects the underlying ProShares ETF holdings for the fund based on the improvement in portfolio risk/return characteristics each underlying ETF provides to a traditional stock and bond portfolio.
- Other alternative strategy ETFs: QAI, MCRO, HDG, QEH, MULT
Aug. 13, 2014, 1:34 PM
- The First Trust Strategic Income ETF (Pending:FDIV) is an actively managed, multi-manager fund that will seek risk adjusted income and capital appreciation for its investors.
- First Trust Global Portfolios Ltd; Energy Income Partners, LLC; Stonebridge Advisors LLC; and Richard Bernstein Advisors are the four subadvisors that will together manage FDIV.
- According to the prospectus, the fund will include high-yield corporate bonds and senior floating-rate loans; mortgage-related investments; preferred securities; international sovereign bonds; energy infrastructure equities; and high-dividend equity securities.
- Other broad hedge fund replication ETFs: QAI, MCRO, HDG, QEH, MULT
Jul. 8, 2014, 2:02 PM
- The AdvisorShares Sunrise Global Multi-Strategy ETF (MULT) will roll out on July 9th, featuring an active long/short strategy.
- MULT will have an expense ratio of 189 basis points and feature coverage of a variety of asset classes through ETFs, futures, foreign currencies, and U.S. Treasurys.
- The fund structure is similar to the IQ Hedge Multi-Strategy Tracker ETF (QAI), a veteran multi-strategy fund which features an expense ratio of 94 basis points and has returned 3.5% since the start of the year.
- Other hedge fund replication ETFs: MCRO, HDG, QEH
Mar. 11, 2014, 12:54 PM
- The First Trust RBA Quality Income ETF (QINC) and RBA American Industrial Renaissance ETF (AIRR) will track their respective Richard Bernstein Advisors indexes; QINC will focus on total return through global firms with strong dividends and capital appreciation potential, while AIRR will invest in both small and mid-cap domestic firms in the industrial and community banking sectors.
- High dividend ETFs and capital strength ETFs: VYM, HDV, KBWD, PEY, DIV, RDIV, FTCS
- Regional banking ETFs: KRE, KBE, IAT, RKH, QABA, KRU, KBWR, KRS
- The Global X Guru Small Cap Index ETF (GURX) and Guru International Index ETF (GURI) are hoping to capitalize on the success of GURU by offering exposure to small-cap and international (respectively) stocks that large hedge fund managers hold.
- Broad hedge fund replication ETFs: QAI, MCRO, HDG, QEH
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
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
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