Former senior investment executive of Bridgewater Associates Bob Elliott is foraying into the exchange-traded fund space with a new offering that gives retail investors access to hedge fund strategies.
The new actively managed fund, the Unlimited HFND Multi-Strategy Return Tracker ETF (HFND), will employ machine learning engines to track the returns of several hedge fund indices across asset classes, according to a company statement. News of the ETF comes alongside the launch of Elliott’s new alternative-focused firm, Unlimited Funds.
“Investors are either ill-served by exorbitant fees in the asset class or are unable to access such exclusive strategies,” he said regarding hedge funds in the statement. “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.”
HFND has an expense ratio of 0.95% and trades on the NYSE Arca.
Funds mirroring hedge fund returns isn’t new. In 2012, the Global X Guru Index ETF (GURU) launched, tracking and constructing portfolios from published holdings of large hedge funds. GURU returns have drastically underperformed the S&P 500 and its corresponding ETF, the SPDR S&P 500 ETF Trust (SPY), both of which have plummeted more than 20% year to date.
Meanwhile, the iMGP DBi Managed Futures Strategy ETF (DBMF), which employs a similar machine learning strategy as HFND’s to analyze real-time investment returns, has generated significant returns since its launch in 2019.
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