Active Alts closes contrarian ‘short squeeze’ ETF

May 26th, 2018 | By | Category: Equities

Active Alts has closed its actively managed Active Alts Contrarian ETF (SQZZ US).

Active Alts closes its Active Alts Contrarian ETF

The fund ceased trading on Nasdaq and was closed to purchase by investors on 25 May 2018.

SQZZ was launched in March 2017 and never reached $1m in assets under management.

Its high expense ratio of 1.95% may have presented a challenge.

The specialist contrarian strategy may also have put some investors off. The fund invested in companies with solid fundamentals that had very large short positions and were subject to a short squeeze.

The fund manager also aimed to lend out the hard-to-borrow securities in an effort to earn a stream of monthly income which had the potential to enhance the total return.

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