AdvisorShares, a leading sponsor of actively managed Exchange Traded Funds (ETFs), announced that the AdvisorShares Active Bear ETF (NYSE:HDGE), the first all short equity actively managed ETF has topped $100 Million in assets. HDGE is managed by John Del Vecchio and Brad Lamensdorf of Ranger Alternative Management (“Ranger”).
“In just eight months of existence, HDGE has not only raised over $100 Million in assets, but was recently the first equity based actively managed ETF with listed options. These are accomplishments that we are all very proud of,” said Noah Hamman, CEO and Founder of AdvisorShares. “Investors have quickly embraced the HDGE forensic accounting methodology that seeks to identify securities to short positions, manage the strategy without derivatives, and offer an alpha solution for hedging a portfolio,” Hamman added.
As of 9/30/2011 and since inception (1/26/2011), HDGE has outperformed the S&P 500 Index, the Fund’s referenced benchmark, and the Inverse S&P 500:
|Active Bear ETF (HDGE)||15.24%||8.56||-0.99||1.00|
|S&P 500 Index||-11.51%||0||1.00||-0.93|
|Inverse S&P 500||8.47%||-0.93||-1.00||0.92|
Standardized Performance for HDGE (as of September 30, 2011)
|Since Inception (01/26/2011)||3 Months||1 Month|
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For the Fund’s most recent month end performance, please visit www.advisorshares.com. The Gross Expense Ratio is 1.88% and the Net Expense Ratio is 1.85%. The Advisor has contractually agreed to reduce its fees and/or reimburse expense in order to keep net expenses from exceeding 1.85% of the Fund’s average daily net assets until October 31, 2012.
Correlation is computed into what is known as the correlation coefficient, which ranges between -1 and +1. Perfect positive correlation (a correlation co-efficient of +1) implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. Alternatively, perfect negative correlation means that if one security moves in either direction the security that is perfectly negatively correlated will move in the opposite direction.
Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.
More information on HDGE can be found on the AdvisorShares website at http://hdge.advisorshares.com.
AdvisorShares is one of the leading providers of actively managed ETFs. As of 10/05/2011 AdvisorShares offers 11 active ETFs with over $420,000,000 of assets under management, including:
Core Tactical Strategies
Dent Tactical ETF (NYSE: DENT)
Cambria Global Tactical ETF (NYSE: GTAA)
Meidell Tactical Advantage ETF (NYSE: MATH)
Core Long/Short Strategies
Mars Hill Global Relative Value ETF (NYSE: GRV)
Core Short Strategies
Active Bear ETF (NYSE: HDGE)
Core Domestic Strategies
Madrona Domestic ETF (NYSE: FWDD)
TrimTabs Float Shrink ETF (NYSE: TTFS)
Core International Strategies
WCM/BNY Mellon Focused Growth ADR ETF (NYSE: AADR)
Madrona International ETF (NYSE: FWDI)
Peritus High Yield ETF (NYSE: HYLD)
Madrona Global Bond ETF (NYSE: FWDB)
AdvisorShares provides educational support to help investors understand ETFs, and the underlying investment strategy for each of the AdvisorShares ETFs. AdvisorShares continues to seek qualified sub-advisor investment partners to offer compelling investment strategies in an active ETF structure. Visit our website at www.advisorshares.com to learn more about us. Follow the AdvisorShares Team on Twitter or ‘Like’ us on Facebook.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Other Fund risks include market risk, equity risk, short sales and leverage risk, large cap risk, early closing risk, liquidity risk and trading risk. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Alpha is the excess return of the fund relative to the return of the benchmark index. An option is a financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. The Inverse S&P 500 is designed to provide the inverse performance of the S&P 500, representing a short position in the index. One cannot invest directly in an index.