It’s a dream for many retail investors to invest like some of the biggest and most influential institutional investors of the likes of George Soros, Carl Icahn and John Paulson, to find the next bunch of outperforming securities. Unfortunately, the hedge fund industry is only accessible to very wealthy investors as these funds generally require hefty minimum investments and also have limits on cash withdrawals.
While tracking the 13-F filing from hedge funds is certainly one way to match the performance of these investing legends, tracking an ETF that follows the same strategy is a potentially more convenient way to do so.
This idea has been gaining popularity, with Global X having recently launched two more ETFs – Global X Guru Small Cap Index ETF (NYSEARCA:GURX) and Global X Guru International Index ETF (NYSEARCA:GURI) – following its success of Global X Guru Index ETF (NYSEARCA:GURU) in the domestic part of the space.
This winning strategy has pressed issuers to come up with more such products particularly given the lackluster performance of the broader market index, the S&P 500, since the start of the year. All star managers can drive stocks higher and following their techniques might be a way to outperform the broader markets.
In hoping to tap into this investor interest, fund provider Direxion has come up with a fund of its own in the market. The new product, which Direxion just made a filing for, looks to follow the iBillionaire Index and give investors a new way to tap into hedge fund strategies. We have detailed some of the key points from this filing below for those investors who are looking for a different way to access this intriguing corner of the market:
Direxion iBillionaire Index ETF
As per the SEC filing, the newly filed fund seeks to track the iBillionaire Index, before fees and expenses. The index uses a set of criteria to select its desired billionaire investor and hedge fund manager from a list of 10 and excludes managers having a personal net worth of less than $1 billion and hedge funds with high turnover. Information regarding the billionaire’s holdings is selected from Form 13F filings.