AdvisorShares Investments will begin trading in it’s new Active Bear ETF (NYSE: HDGE) on 27 January. HDGE is sub-advised by portfolio managers John Del Vecchio and Brad Lamensdorf of Ranger Alternative Management, a Dallas-based investment manager.
The HDGE Portfolio Management Team will implement a short-only large-cap domestic equity investment strategy by utilising 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 (pictured), CEO and Founder of AdvisorShares, says: "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."