Emles launches long/short equity ETF

Jun 15th, 2021 | By | Category: Alternatives / Multi-Asset

ETF STRATEGY NEWS! ETF Strategy is delighted to announce the launch of ETF Strategy Hub (hub.etfstrategy.com), an on-demand repository of webcasts, videos, podcasts and white papers. Debuting with Special Series on Technology & Innovation in China and the Digital Economy.


Emles Advisors has launched an actively managed ETF that seeks to deliver hedge fund-like returns through a long/short equity strategy.

Emles launches long/short equity ETF

Long/short equity strategies seek positive returns in all market environments.

The Emles Alpha Opportunities ETF (EOPS US) has listed on Cboe BZX Exchange and is managed by Nathan Miller, former long/short equity manager at NGM Asset Management, Citadel Investment Group, and RBC Capital.

Miller has over two decades of experience in implementing long/short equity strategies for hedge funds and family offices.

The fund invests primarily in value stocks of North American companies with a focus on “old economy” sectors like industrials, consumer discretionary, and materials where Miller believes there are significant dislocations between stock prices and the underlying true worth of the companies.

Emles expects the fund’s net long exposure to typically be between 70% and 110% of total assets; however, it may range from -100% to 225% of total assets over a short time horizon while an active directional exposure is being applied.

According to Emles, the flexibility to take both long and short positions enhances the fund’s total return potential across market cycles by helping to preserve capital in more challenging markets.

While assets are deployed primarily across equities, the fund may use derivatives such as futures and options contracts to implement its strategy.

Alternative investments, such as hedged fund strategies, can offer diversification benefits when added to conventional stock/bond portfolios, helping to improve risk-adjusted returns.

So-called liquid alternatives – alternative investment strategies made available to the retail market – come with many benefits including an easier entry point in terms of initial investment, regulated transparency and reporting requirements, and limits on the amount of total leverage used.

While liquid alternative ETFs are typically more expensive than regular equity and fixed income ETFs – the fund comes with an expense ratio of 1.75% – their management fees are generally lower than those charged by traditional alternative investment vehicles.

Nathan Miller, Portfolio Manager at Emles, said: “EOPS provides investors the opportunity to access a true long/short hedge fund strategy and its potential returns through the transparent liquid structure of an ETF. We uncover opportunities where we believe the market is wrong about the prospects for companies, allowing us to ‘avoid the herd’- we can move against the consensus either when investors seem too pessimistic about a company and deflate its stock price or when euphoria sets in and pushes a stock’s price too high.”

Gabriel Hammond, CEO of Emles, said: “Emles has already created differentiated index-based products that seek to address today’s investment challenges. With the launch of our actively managed Alpha Opportunities ETF, we’re excited to expand our suite of offerings and provide investors with an even more flexible approach to uncover and capture return opportunities.”

Tags: , , , , , , ,

Leave a Comment