Alternative Investments/Hedge Funds: Ex-Bridgewater Executive Launches Unlimited – A Hedge Fund Tracking ETF
The new ETF uses a sophisticated machine learning engine to track the gross-of-fees returns across several hedge fund indices.
Unlimited, a new investment firm purpose-built to give all investors exposure to the alpha-generating potential of alternative investment strategies without the high fees and adverse tax implication, has been launched by Bob Elliott, former member of the Investment Committee at Bridgewater Associates. The firm has debuted the Unlimited HFND Multi-Strategy Return Tracker ETF (NYSE: HFND), an actively managed fund which uses a sophisticated machine learning engine to track the gross-of-fees returns across several hedge fund indices. (Yahoo Finance)
Unlimited HFND Multi-Strategy Return Tracker ETF (NYSE: HFND)
The ETF is a hedge fund replication vehicle that will help investors through a period of high volatility and uncertainty through investments that will diversify their portfolios to weather these varied market conditions. Moreover, the alpha generated by hedge funds is often neutralised by high fees and inefficient tax structures. HFND will not rely on public filings used by previous hedge fund replicating ETFs. Nor will it adopt a single strategy that can suffer long periods of underperformance.
“Unlimited has instead built an ensemble of machine learning algorithms that analyze real-time investment returns of a diversified set of hedge fund styles. HFND will allocate toward a basket of ETFs and exchange-listed futures contracts to replicate the returns of those underlying hedge funds,” the fund statement revealed.
HFND will have management fees that are roughly one-quarter of the standard 2 and 20 cost of a typical hedge fund.
“After spending many years in the hedge fund industry, we’ve identified that investors are either ill-served by exorbitant fees in the asset class or are unable to access such exclusive strategies,” said Mr. Elliott. “With HFND, we are bridging what we see as a crucial gap in the market by bringing together the best parts of the hedge fund industry with the democratizing structure of an ETF. Ultimately, we believe every investor should have access to institutional quality return potential.”
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