Liquid Alternatives: The Emles Alpha Opportunities ETF For A Long/Short Equity Strategy
The new ETF from Emles Advisors offers a hedge-fund-like strategy inside an ETF structure.
Emles Advisors announced last week the launch of the Emles Alpha Opportunities ETF (EOPS) which applies a long/short strategy while investing primarily in value stocks of North American companies with a focus on “old economy” sectors like industrials, consumer discretionary, and materials. The fund is trading on the CBOE BZX Exchange and applies an expense ratio of 1.75%. (ETF Strategy)
Emles Alpha Opportunities ETF (EOPS)
The new ETF from Emles is managed by Nathan Miller who has over twenty years of experience in implementing long/short strategies. Miller has worked for hedge funds and family offices and was previously long-short equity manager at Citadel Investment Group, NGM Asset Management, and RBC Capital.
The fund’s hedge fund-like strategy is a form of alternative investing that offers the twin advantages of better risk-adjusted returns as well as diversification from conventional [60:40] portfolios. When built inside an ETF vehicle, the strategy becomes available to the retail market and is referred as a liquid alternative.
“Avoid the herd”
Says Miller: said: “EOPS provides investors the opportunity to access a true long/short hedge fund strategy and its potential returns through the transparent liquid structure of an ETF. We uncover opportunities where we believe the market is wrong about the prospects for companies, allowing us to ‘avoid the herd’- we can move against the consensus either when investors seem too pessimistic about a company and deflate its stock price or when euphoria sets in and pushes a stock’s price too high.”
Typically, between 70% to 110% of the fund’s assets would be subject to a long exposure, but this could widen to -100% to 225% of total assets over a shorter timeframe if market conditions so require.
The ability of the fund to be flexible on its long and short exposures helps protect its assets and capital when markets are “challenging.”
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