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.
The IQ Hedge Event-Driven Tracker ETF (Pending:QED) and the IQ Hedge Long/Short Tracker ETF (Pending:QLS) are the newest fund of fund ETFs in IndexIQ's lineup.
“With the addition of QED and QLS to its family of liquid alternative hedge fund replication vehicles, IndexIQ now offers an ETF designed to track each of the four major hedge fund categories (Event-Driven, Equity Hedge or Long/Short, Market Neutral and Global Macro),” said the issuer in a statement.
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.
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.
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.
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.
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.
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.
After-hours top gainers, as of 5:15 p.m.:FNSR +10%. GME +9%. HW +7%. EDAP +6%. NOK +5%. After-hours top losers:GASX -9%. ZIXI -7%. SCS -4%. QAI -2%. GLW -2%. Jun. 19, 2013, 5:30 PM|2 Comments
May 24, 2013, 9:52 AM
AUM 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