DBMF - DBMF: A Trend Following Hedge Fund In An ETF Format

2024-04-09 22:46:15 ET

Summary

• The iMGP DBi Managed Futures Strategy ETF is a complex exchange-traded fund that aims to replicate the performance of managed futures hedge funds.
• The fund takes long or short positions across equities, fixed income, currencies, and commodities, making its risk factors constantly changing and opaque.
• Despite its complexity, the fund has shown strong performance and low correlation to traditional asset classes, making it an ideal portfolio diversifier, especially for a 401k account.
• The vehicle was up substantially in 2022 when both equities and fixed income were down, and is up over 13% so far in 2024 on the back of a long oil, long gold and long equities positioning.

Thesis

The iMGP DBi Managed Futures Strategy ETF ( DBMF ) is an exchange traded fund, but its strategy is a very complex one. The first rule of investing is that one must understand what they buy. As per its own literature, DBMF:

seeks to replicate the pre-fee performance of leading managed futures hedge funds and outperform through fee/expense disintermediation.

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