The Power of Alternative ETFs
Higher Target Returns
Seeks higher returns through increased volatility at lower fees
Lower Fees
HFEQ’s 1.00% management fee is a fraction of the average fee charged by private 2&20 funds
Lower Taxes
For taxable investors, ETFs are more tax efficient than Limited Partnership funds
No Paperwork
Simplify your life and skip the paperwork and the K-1s
Fund Overview
The Fund seeks to create an investment portfolio with similar return characteristics to the gross of fees returns of the hedge fund industry’s Equity Long/Short sector (see the section of the Fund’s Prospectus titled “Additional Information about the Funds”), while also targeting a volatility level approximately twice that of the sector. By incorporating higher volatility, the Fund’s sub-adviser, Unlimited Funds, Inc. (“Unlimited” or the “Sub-Adviser”), believes that the Fund’s net of fees returns may outperform those of the Equity Long/Short sector. Additionally, the Fund may benefit from its comparatively lower operating expenses versus the relatively high fees and expenses charged by hedge funds.
Over time, through the use of this proprietary process, the Sub-Adviser expects the Fund to have similar return characteristics as the hedge fund industry Equity Long/Short sector’s gross of fees returns, but with higher volatility. The Sub-Adviser performs the foregoing analyses on an ongoing basis because hedge fund data for different hedge fund indices (the “Indices”) is available at different times. The Sub-Adviser will frequently trade all or a significant portion of the holdings in the Fund’s investment portfolio as a result.
The Fund is not a hedge fund, nor will it invest in hedge fund strategies or positions. For the avoidance of doubt:
- The Fund will not invest in hedge funds.
- The Fund will not seek to replicate the direct underlying holdings of hedge funds.
- The Fund will not engage in certain types of investment activities that are permissible for hedge funds. For example, hedge funds may use more leverage than the Fund, and hedge funds may invest a greater percentage of their assets in illiquid investments as compared to the Fund.