Management (“CAM”), a Memphis, Tenn.-based investment advisor and subsidiary of Commerce Holdings, LLC who advise on approximately $700 million in assets.
QEH employs an actively managed long/short strategy that seeks to exceed the risk-adjusted performance of approximately 50% the long/short equity hedge fund universe as defined by the constituents of the HFRI Equity Hedge (Total) Index, aiming to provide investors with better risk adjusted returns versus the S&P 500 Index over time while reducing the time required and expertise needed to select individual hedge funds. Combined with its exposure to the HFRI Equity Hedge (Total) Index, CAM utilizes its own proprietary research with Markov Processes International’s (“MPI”) Dynamic Style Analysis (“DSA”) hedge fund analysis software, and extensive experience and knowledge of the hedge fund investment community for its portfolio management of QEH.
Noah Hamman, CEO of AdvisorShares, said, “We’re excited about our partnership with CAM and bringing QEH to market, providing an alternative strategy and expected return stream that was previously beyond the reach of an average investor but now available with the transparency and liquidity of an actively managed ETF. Experienced hedge fund managers, represented in this Index that QEH seeks to outperform, are difficult to get access to and a challenge to deal with regarding liquidity, transparency and tax treatment. In utilizing CAM’s extensive network and knowledge within the hedge fund universe, we feel QEH offers a core alternative solution that investors could use to further diversify their portfolio, which a 20-30% allocation to core alternatives can help bring true diversification to investors’ asset allocation.”
“With the launch of QEH, we feel we’re providing advisors and their clients added value with everyday transparency and liquidity of an alternative strategy aimed to deliver a higher risk adjusted return than its notable benchmark over the long-term,” said Kurt Voldeng, Chief Operating Officer of CAM and Co-Portfolio Manager of QEH. “We believe with our benchmark’s underlying constituents measuring approximately 1,000 hedge fund managers, places QEH at an advantage over our competition to generate alpha.”
“Through our own advanced proprietary research combined with MPI’s DSA technology, we believe the actively managed methodology employed in QEH may yield better risk adjusted returns than traditional long-only strategies for investors over time,” said Akos Beleznay, PhD, Chief Investment Officer of CAM and Co-Portfolio Manager of QEH. “We look forward to working with AdvisorShares in allowing shareholders to allocate their investment capital without the burden of a high minimum threshold historically associated with similar alternative strategies.”
For media inquiries requesting more information on AdvisorShares, please contact Ryan Graham at 202-684-6442 or [email protected]. For financial professionals and investors requesting more information, please visit www.advisorshares.com or call the AdvisorShares Investment Consultant Team at 1-877-THE-ETF1 (1-877-843-3831).
AdvisorShares is one of the leading providers of actively managed ETFs. As of 8/1/2012 AdvisorShares offers 15 active ETFs with approximately $670,000,000 of assets under management, including:
Active Bear ETF (NYSE: HDGE)
Global Echo ETF (NYSE: GIVE)
Global Alpha & Beta ETF (NYSE: RRGR)
Global Equity Strategies
Accuvest Global Opportunities ETF (NYSE: ACCU)
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.
About Commerce Asset Management
Commerce Asset Management was established in 2011. Commerce offers discretionary and non-discretionary alternative investment management services to institutional investors and high net worth families through fund of funds vehicles, separately managed accounts and customized alternative solutions. Additionally, Commerce owns 85% of Quantitative Alternative Management, LLC (“QAM”) an entity formed to design and develop various types of alternative investment products, specifically the QAM Equity Hedge Liquid Strategy.
About Markov Processes International, LLC (MPI)
MPI is a global provider of investment research and technology solutions with offices in the U.S., Europe and Asia. MPI’s analytical tools and methodologies are employed by leading institutions and financial services organizations to power their quantitative investment research and reporting. MPI offers the most advanced platform available to analyze hedge funds, mutual funds, portfolios and other investment products, as well as asset allocation and portfolio optimization tools. www.markovprocesses.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 www.AdvisorShares.com. Please read the prospectus carefully before you invest.
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. The Fund may invest in derivatives to gain market exposure, enhance returns or hedge against market declines. Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed the Fund’s original investment. The Fund may participate in leveraged transactions to include selling securities short which create the risk of magnified capital losses. Under certain market conditions, short sales can increase the volatility and decrease the liquidity of certain securities or positions and may lower the Fund’s return or result in a loss. The Fund is subject to the underlying ETFs and ETNs risks that comprise this “fund of funds”,which are detailed in the prospectus and include commodity risk, counterparty risk, foreign securities and currency risks, and concentration risk. This Fund may not be suitable for all investors. Newly organized, the Fund has no trading history and there can be no assurance that active trading markets will be developed or maintained.
The HFRI Equity Hedge (Total) Index is a fund-weighted index of select hedge funds focusing on Equity Hedge strategies. Equity Hedge investing consists of a core holding of long equities hedged at all times with short sales of stocks and/or stock index options.
The S&P 500 Index is a free-float capitalization-weighted index based on the common stock prices of 500 American companies. It is one of the most commonly followed equity indices and many consider it the best representation of the market and a bellwether for the U.S. economy.
The HFRI Equity Hedge Index and HFR are the trademarks and service marks of Hedge Fund Research, Inc. (“HFR”) and are used under license from HFR. HFR is in no way related or connected to or affiliated with Commerce Asset Management, LLC or the Licensee Fund. HFR has not participated in the formation of the Licensee Fund, and HFR does not endorse, approve or recommend investing in the Licensee Fund.
Shares are bought and sold at market price (closing price) not net asset value (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.