Bob Elliott, a former senior investment executive of Bridgewater Associates has made a splash in the exchange traded fund world with the launch of an actively managed fund that aims to provide retail investors access to hedge fund strategies.
The Unlimited HFND Multi-Strategy Return Tracker ETF ( NYSEARCA: HFND ) uses a proprietary machine learning algorithm to generate a portfolio which best matches the most recent month’s returns of each major hedge fund style. According to the ETF these trading styles include long/short equity, global macro, event-driven, fixed income arbitrage, emerging markets, managed futures, and multi-strategy.
The ETF then aggregates these portfolios based on the relative asset levels in each hedge fund style into a total hedge fund industry model.
HFND was launched on Tuesday and has seen little movement since its trading debut as the fund is now +0.1% .
HFND is also attached with a 1.03% expense ratio and generally consists of long and short positions in 30 to 50 underlying ETFs and futures contracts.
Some of the ETF holdings include ( TBF ), ( VCSH ), ( NYSEARCA: VT ), ( BCI ), ( NYSEARCA: JNK ), and ( NYSEARCA: XLRE ).
Elliot stated: “With HFND, we are bridging what we see as a crucial gap in the market by bringing together the best parts of the hedge fund industry with the democratizing structure of an ETF.”
Regarding other ETF launches, Wall Street also received a new thematic exchange traded fund that works to fight against the growing ESG trend.
For further details see:
Ex-Bridgewater Exec launches an actively managed ETF