Blue Tractor Group, LLC, an aspiring issuer of exchange traded funds, said Monday it has filed a third amended and restated application with the Securities and Exchange Commission (SEC) for its unique ETF structure known as the Shielded Alpha ETF.
“As described in the Application, a Shielded Alpha ETF would permit active fund management but unlike transparent actively managed ETFs, does not require full portfolio disclosure on a daily basis in order to facilitate pricing, hedging and arbitrage,” according to a statement issued by Blue Tractor. “Consequently, by using the Shielded Alpha solution active managers could issue actively managed ETFs while still fully obscuring their proprietary alpha generation strategy from the market.”
“Blue Tractor’s proprietary algorithms facilitate structuring of an actively managed exchange traded fund where the fund manager wishes to shield the alpha generation strategy from the market,” according to the company’s web site.