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AdvisorShares launches QAM Equity Hedge ETF

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AdvisorShares, a sponsor of actively-managed exchange traded funds, has launched the QAM Equity Hedge ETF. 

QEH is sub-advised by Commerce Asset Management (CAM), a Tennessee-based investment adviser and subsidiary of Commerce Holdings, which advises on approximately USD700m in assets.

QEH employs an actively managed long/short strategy that seeks to exceed the risk-adjusted performance of approximately 50 per cent the long/short equity hedge fund universe as defined by the constituents of the HFRI Equity Hedge (Total) Index, aiming to provide investors with better risk adjusted returns versus the S&P 500 Index over time while reducing the time required and expertise needed to select individual hedge funds. 

Combined with its exposure to the HFRI Equity Hedge (Total) Index, CAM utilises its own proprietary research with Markov Processes International’s (MPI) Dynamic Style Analysis (DSA) hedge fund analysis software, and extensive experience and knowledge of the hedge fund investment community for its portfolio management of QEH.

Noah Hamman (pictured), chief executive of AdvisorShares, says: "We’re excited about our partnership with CAM and bringing QEH to market, providing an alternative strategy and expected return stream that was previously beyond the reach of an average investor but now available with the transparency and liquidity of an actively managed ETF. Experienced hedge fund managers, represented in this index that QEH seeks to outperform, are difficult to get access to and a challenge to deal with regarding liquidity, transparency and tax treatment. In utilizing CAM’s extensive network and knowledge within the hedge fund universe, we feel QEH offers a core alternative solution that investors could use to further diversify their portfolio, which a 20-30 per cent allocation to core alternatives can help bring true diversification to investors’ asset allocation."

"With the launch of QEH, we feel we’re providing advisors and their clients added value with everyday transparency and liquidity of an alternative strategy aimed to deliver a higher risk adjusted return than its notable benchmark over the long-term," says Kurt Voldeng, chief operating officer of CAM and co-portfolio manager of QEH. "We believe with our benchmark’s underlying constituents measuring approximately 1,000 hedge fund managers, places QEH at an advantage over our competition to generate alpha."

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