New Player Files for Active ETF of ETFs
January 7th at 1:00am by Tom Lydon
Add another new exchange traded fund (ETF) provider to the list: an upstart has filed for exemptive relief with the Securities and Exchange Commission (SEC) for a line of mostly actively managed funds.
Matt Hougan for Index Universe says new ETF upstart FFCM LLC plans to initially launch an ETF of ETFs designed “to outperform a major hedge fund index such as the Credit Suisse/Tremont Global Macro Index.”
Hougan says there’s not a lot of detail in the filing, but there’s some information about an aggressive 130/30 fund in there, as well as a range of follow-on products.
A 130/30 strategy involves shorting poor-performing stocks and buying stocks that are anticipated to have high returns, taking a 130% long position in high-ranked stocks and a 30% short position in low-ranked stocks. [Is 130/30 a good strategy for you?]
The filing is here, if you wish to read more.
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