AlphaClone Launches International ETF
November 10 2015 - 9:00AM
Business Wire
—New International ETF (NYSE: ALFI) Expands
Alpha-Seeking Strategy to Global Opportunities—
AlphaClone, Inc. (“AlphaClone”), a pioneer in building
accessible, alpha-seeking investment strategies for long-term
investors, today launched the AlphaClone International ETF (NYSE:
ALFI), which tracks the AlphaClone International Downside Hedged
Index that was unveiled last week.
By accessing the investment ideas of the world’s most
established hedge fund managers, the ETF seeks to give investors
the potential to outperform broader international markets while
simultaneously hedging against protracted market downturns. This is
the firm’s second ETF on the market – the AlphaClone Alternative
Alpha ETF (NYSE: ALFA), the first of its kind to track hedge fund
holdings, launched in 2012 and has won significant market
adoption.
“Following similar methodology inside separately managed
accounts since 2010, we’re excited to offer an international ETF to
help long-term investors navigate international opportunities,”
said Maz Jadallah, CEO of AlphaClone. “Our approach seeks to
combine the best of man and machine by leveraging the most
established investors while offering a rules-based investment
methodology.”
The index uses AlphaClone’s proprietary Clone Score methodology
to continuously score managers based on the efficacy of following
their disclosures, then aggregates at least 40 high conviction
American Depository Receipt (ADR) holdings from managers with the
highest score. Holdings are weighted based on the number of holders
and are adjusted and weighted quarterly at pre-defined intervals.
The International Downside Hedged Index also employs the firm’s
innovative dynamic hedge mechanism that allows it to vary from
long-only to market-hedged when the S&P 500 closes below its
200-day simple moving average at any month’s end.
“Pursuing the potential for alpha is even more important today
for long-term investors given the anemic growth forecasted for
equities and bonds over the next several years,” Jadallah
continues. “Our strategies seek to offer long-term investors the
ability to pursue alpha but with the benefits of a passive
investment vehicle.”
For more information about AlphaClone, please visit
www.alphaclone.com. To learn more about ALFI, please visit
alphaclonefunds.com.
About AlphaClone, Inc.
AlphaClone, Inc. is a San Francisco-based registered investment
advisor and equity research firm that is a pioneer in building
accessible alpha-seeking investment strategies for long-term
investors. AlphaClone's investment products and solutions are
derived from institutional investor public disclosures and give
investors direct access to the investment ideas of the world’s most
established hedge funds. The firm's proven, intelligent,
risk-managed portfolio construction approach seeks to provide
liquid, transparent, low-fee strategies that can give investors
exposure to the alpha potential inherent in hedge fund investments.
AlphaClone's investment research and strategies are available to
investors through managed accounts and exchange-traded funds.
The fund’s investment objectives, risks, charges and expenses
must be considered carefully before investing. The prospectus and
summary prospectus contains this and other important information
about the investment company, and it may be obtained by calling
1-800-617-0004 or visiting www.alphaclonefunds.com.
Read it carefully before investing.
Investments involve risk. Principal loss is possible. The
AlphaClone Alternative Alpha ETF has the same risks as the
underlying securities traded on the exchange throughout the day.
Redemptions are limited and often commissions are charged on each
trade, and ETFs may trade at a premium or discount to their net
asset value. The AlphaClone Alternative ETF can make short sales of
securities, which involves the risk that losses in securities may
exceed the original amount invested in a security. The AlphaClone
International ETF fund is non-diversified, meaning they may
concentrate their assets in fewer individual holdings than a
diversified fund. The AlphaClone International ETF fund invests in
foreign securities which involve greater volatility and political,
economic and currency risks and differences in accounting methods.
These risks are greater in emerging markets. Therefore, the fund is
more exposed to individual stock volatility than a diversified
fund. REITs may be affected by changes in the value of their
underlying properties or mortgages or by defaults by their
borrowers or tenants. Furthermore, these entities depend upon
specialized management skills, have limited diversification and
are, therefore, subject to risks inherent in financing a limited
number of projects. In addition, the performance of a REIT may be
affected by changes in the tax laws or by its failure to qualify
for tax-free pass-through of income. Investments in securities of
MLPs involve risks that differ from an investment in common stock.
Holders of the units of MLPs have more limited control and limited
rights to vote on matters affecting the partnership. There are also
certain tax risks associated with an investment in units of MLPs.
In addition, conflicts of interest may exist between common unit
holders, subordinated unit holders and the general partner of a
MLP, including a conflict arising as a result of incentive
distribution payments. The performance of the funds may diverge
from that of their Index. Because the funds employ a representative
sampling strategy and may also invest up to 20% of its assets in
securities that are not included in the Index, or may overweight or
underweight certain components of the Index, they may experience
tracking error to a greater extent than a fund that seeks to
replicate an index. The funds are not actively managed and may be
affected by a general decline in market segments related to the
index. The funds invest in securities included in, or
representative of securities included in, their index, regardless
of their investment merits. Outside the index construction rules,
the funds do not take defensive positions under any market
conditions, including conditions that are adverse to the
performance of the funds. Changes in currency exchange rates and
the relative value of non-U.S. currencies may affect the value of
the ADRs and the value of your Fund shares. Investing in small cap
companies involve additional risks such as limited liquidity and
greater volatility than large companies.
The AlphaClone International Downside Hedged Index represents
American Depository Receipts (ADR) securities that are favored by
hedge funds and institutional investors in their public
disclosures. The index is equal weighted with an overlap bias which
gives a security held by twice the number of managers twice the
weight. The index is reconstituted quarterly and can vary between
being long only and market neutral. The index's adjustment in
long/short positions does not guarantee against market loss. The
S&P 500 Index is an unmanaged market index generally considered
representative of the stock market as a whole. The index focuses on
the Large-Cap segment of the U.S. Equities market. It is not
possible to invest directly in an unmanaged index. This material
has been distributed for informational purposes only and should not
be considered as investment advice or a recommendation of any
particular security, strategy or investment product. Information
contained herein has been obtained from sources believed to be
reliable, but not guaranteed. No part of this material may be
reproduced in any form, or referred to in any other publication,
without express written permission. Alpha is the abnormal rate of
return on a security or portfolio in excess of what would be
predicted by an equilibrium model like the capital asset pricing
model (CAPM).
The AlphaClone ETFs are distributed by Quasar Distributors, LLC.
The AlphaClone Alterative Alpha ETF’s investment advisor is
Exchange Traded Concepts LLC. The AlphaClone International ETF’s
investment advisor is AlphaClone, Inc. The funds’ sub-advisor is
Vident Investment Advisory LLC. AlphaClone, Inc. owns the indexes
that underlie the funds. KCG Americas LLC is the funds’ lead market
maker. Quasar is not affiliated with AlphaClone, Exchange Traded
Concepts, Vident, or KCG Americas. The AlphaClone logo is a service
mark of AlphaClone, Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20151110005477/en/
Gregory FCA for AlphaCloneJen Micklow,
610-228-2148jenm@gregoryfca.com
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