AdvisorShares Investments, LLC, a sponsor of actively managed Exchange Traded Funds (ETFs), today announced that it will begin trading in the Active Bear ETF (NYSE:HDGE) tomorrow, January 27th. HDGE is sub-advised by portfolio managers John Del Vecchio and Brad Lamensdorf of Ranger Alternative Management, L.P. (“Ranger”) a Dallas-based investment manager.
The HDGE Portfolio Management Team will implement a short-only large-cap domestic equity investment strategy by utilizing a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Team seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance. Lastly, the HDGE Team employs a variety of technical factors that drive short Beta exposure with the goal of generating alpha in any market environment.
Noah Hamman, CEO and Founder of AdvisorShares, said, “Investors have told us that they are searching for a true hedging solution, with an experienced short manager. The current products either blindly short every security, or use exposure to commodities as a synthetic hedge which we know often does not work. Ranger has considerable experience using their proprietary forensic accounting approach to identify domestic equity stocks that are expected to underperform.”
John Del Vecchio, CFA, Portfolio Manager of HDGE, said, “We are very excited to launch HDGE with AdvisorShares as we believe that most current options in the marketplace which purport to provide a true equity hedge for investment advisors are not only difficult to implement and maintain, but don’t provide enough alpha when they should. HDGE is managed by a team with extensive specialized backgrounds in short selling securities that will employ a disciplined, repeatable methodology in analyzing factors such as firms’ accounting statements, management team, corporate governance and competitive advantage when looking for companies to include in the HDGE portfolio.”
John Del Vecchio on CNBC: John Del Vecchio will appear on CNBC at approximately 12:10pm ET, tomorrow, January 27th to discuss the launch of HDGE.
Financial Professionals Only: Click here to register to attend a live webcast with the HDGE portfolio managers, Monday, January 31st at 4pm ET.
AdvisorShares is one of the leading providers of actively managed ETFs. As of 12/31/2010 AdvisorShares offers 5 active ETFs with over $150,000,000 of assets under management. AdvisorShares is pleased to offer actively managed ETFs, including the Dent Tactical ETF (NYSE:DENT), the Mars Hill Global Relative Value ETF (NYSE:GRV), the WCM/BNY Mellon Focused Growth ADR ETF (NYSE:AADR), the Cambria Global Tactical ETF (NYSE:GTAA) and the Peritus High Yield ETF (NYSE:HYLD). 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 http://www.advisorshares.com/ to learn more about us. Follow the AdvisorShares Team on Twitter or ‘Like’ us on Facebook.
About Ranger Alternative Management, L.P.
Ranger Alternative Management, L.P., is an investment management firm which implements a bottom-up, fundamental, research driven security selection process which seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition to these issues, Ranger seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance. Visit their website at http://www.rangeralternatives.com/.
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 http://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. Newly organized, the Fund has no trading history and there can be no assurance that active trading markets will be developed or maintained.
Downward earnings revisions is when an investment analyst or a company’s management revises their earnings projections for the company below the consensus estimate. Reduced forward guidance is when a company’s management reduces previously disseminated earnings projections for an upcoming time period. 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 measure of performance on a risk-adjusted basis.