Blair Hull’s new actively managed ETF targets hedge fund-like returns

Jun 26th, 2015 | By | Category: Alternatives / Multi-Asset

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Hull Tactical Asset Allocation, a US-based investment adviser founded by prominent trader Blair Hull, has announced the launch of the Hull Tactical US ETF (HTUS), an actively managed exchange-traded fund designed to deliver hedge fund-like returns.

Market Wizard Blair Hull's new actively managed ETF targets hedge fund-like returns

Blair Hull, Founder of Hull Tactical Asset Allocation.

The fund employs a proprietary, quantitative trading model to time exposure to the S&P 500 with the aim of delivering absolute returns which will complement an investor’s core asset allocation.

“Investing in the S&P 500 can be an uncertain game, but a disciplined and systematic approach can help you to outperform on a risk-adjusted basis,” said Blair Hull, a featured trader in Jack Schwager’s influential Market Wizards book series. “Our aim is to help investors avoid another 2008 in their portfolios, with a strategy not available in ETF form until now. We want to provide investors access to hedge fund-like investing. Investors need a strategy to gain lower volatility exposure to the equity market, especially in today’s volatile environment, and we believe HTUS delivers just that.”

Designed to perform under all market conditions, the fund’s quantitative trading model utilises various proprietary, analytical investment models that examine current and historical market data to attempt to predict the performance of the S&P 500 Index over the next six months. Based on this forecast, the fund will take long or short positions in ETFs, leveraged ETFs or S&P 500-related futures. The remaining assets in the portfolio are held in cash.

“Incorporating alternative strategies can help reduce overall volatility while increasing portfolio diversification – investors and advisors alike tend to name diversification as the top driver of investing in alternative strategies,” explained Steve McCarten, Chief Operating Officer of Hull Tactical Asset Allocation. “A wide range of investors – from sophisticated retail investors, to independent advisors to endowments and pension funds in the institutional space – should find our product advantageous.”

The fund has the ability to take long positions with exposure of up to 200% of its net assets; exposure to short positions is limited to no more than 100% of its net assets. According to the Hull Tactical website the fund is, as of 15 September 2015, 100% invested in cash.

Developed in partnership with Exchange Traded Concepts, the white-label ETF issuer platform, the fund is listed on the NYSE Arca and carries a gross annual operating expense ratio of 1%.

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