AdvisorShares has filed to launch a new actively managed ETF , an "ETF of ETFs" that will pair long and short positions in different ETFs.
The symbol will be GRV.
Typically, these positions will be "balanced, or market neutral, isolating the impact of market direction from returns".
Says the filing:
The primary driver for HTE’s relative value strategy is a dynamic ranking of the four major global regions (U.S., Europe, Asia and Emerging Markets) depicting the relative attractiveness to one another and the global “average” as represented by the MSCI World Index. HTE’s ranking system constantly assesses the macro-economic conditions and fundamentals that most heavily influence the relative performance of each region, along with the valuation and momentum factors that help identify expected relative returns between each region. These rankings culminate in the active management of which global region(s) to be long or short in the Fund at any point in time.
HTE also monitors and assesses the relative attractiveness of each country within the major global regions to identify those countries that are expected to outperform or under-perform their respective regional index. In doing so, HTE takes into consideration the size, index weighting, liquidity and investment options for each country in order to minimize tracking error risk that could undermine the primary efficacy of the long/short regional weighting. HTE would use this insight to overweight the most relatively attractive countries in the global region(s) held in its long portfolio, and overweight the most relatively unattractive countries in the global region(s) held in its short portfolio. Finally, in certain regions and countries (especially the U.S.), there may be an added opportunity to exploit relative value opportunities within styles (namely large-cap versus small-cap and/or value versus growth) and sectors. HTE would use this insight to overweight the most attractive styles or sectors in its long portfolio and overweight the least attractive styles or sectors in its short portfolio.
This looks interesting. We hope it does better than the other "actively managed" ETFs in the market.
Portfolio managers:
Jason D. Huntley is the Founder of HTE, and also the Founder and Managing Partner of HTE Asset Management, LLC. Mr. Huntley founded HTE in 1997 after spending five years advising affluent families and institutional clients for boutique firms in California and Colorado. Mr. Huntley earned a bachelor’s degree in Business Administration from Point Loma Nazarene College in 1994.
David A. Houle, CFA, is the Director of Research at HTE and works directly with Mr. Huntley to oversee strategy development, trading and risk management, which he has done since joining the firm in August 2002. Mr. Houle earned a bachelor’s degree in Finance from the University of Colorado in 2003, and later went on to earn the Charted Financial Analyst designation.
Elliott J. Orsillo, CFA, joined HTE in October 2009 after working for six years as a portfolio manager at Russell Investments and a financial analyst for Southern California Edison. Mr. Orsillo earned a bachelor’s degree in Engineering from Oral Roberts University in 2001 and a master’s degree in Management Science with an emphasis in Finance from Stanford University in 2003. Mr. Orsillo also holds the Chartered Financial Analyst designation.
Gregory L. Thatcher, CFA, joined HTE in April 2000 after working for nearly 15 years in the brokerage industry with Piper Jaffray and Stifel, Nicolaus & Company. Mr. Thatcher earned a bachelor’s degree in Agricultural Economics from the University of Arizona in 1988, and also holds the Chartered Financial Analyst designation.
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