1. Hedgeye launched the HELS ETF for long-term capital appreciation. 2. HELS employs a 130/30 strategy to enhance risk/return outcomes. 3. Patrick Kent manages HELS, leveraging Hedgeye's macro and quantitative research. 4. HELS aims to outperform equity benchmarks by active long and short positions. 5. New ETF strategy involves inherent risks including adviser inexperience.
FAQ
Why Bullish?
The 130/30 strategy allows for optimized risk-return profiles, attracting investor interest similar to past successful ETFs. Active management could lead to differentiated performance in volatile markets, akin to the success of similar ETFs historically.
How important is it?
The launch of HELS indicates a novel investment approach; early adopters might see significant returns based on performance, thus creating momentum impacting prices.
Why Short Term?
Initial interest in HELS may spike as investors seek innovative strategies, especially in an uncertain economic climate. Over the next few months, market sentiment could drive quicker adoption among active traders.
Hedgeye Asset Management Launches Hedgeye 130/30 Equity ETF (HELS)
Hedgeye Asset Management, LLC, a subsidiary of Hedgeye Risk Management, has unveiled the Hedgeye 130/30 Equity ETF (HELS), a new actively managed exchange-traded fund designed to achieve long-term capital appreciation using a strategic 130/30 investment approach.
Overview of the Hedgeye 130/30 Equity ETF (HELS)
The Hedgeye 130/30 Equity ETF (HELS) aims to offer investors a sophisticated alternative to traditional equity investing. This innovative fund combines a high-conviction long portfolio with a targeted short book, aiming to deliver improved risk/return outcomes compared to conventional long-only equity investments.
HELS will utilize Hedgeye's proprietary macro research process and quantitative Signals framework to inform its investment choices, with the goal of outperforming broader equity benchmarks in diverse market environments.
A Systematic Approach to Equity Investing
HELS employs a 130/30 strategy, allowing for a 130% gross long position complemented by a 30% short position. This structure maintains an approximate 100% net market exposure while enabling the fund to express both positive and negative convictions on specific stocks.
- 130% gross long position: Focused on companies identified as structural winners.
- 30% short position: Targeting stocks with weak fundamentals or negative indicators.
Proceeds from short sales are reinvested into high-potential long positions, which enables HELS to capitalize on Hedgeye's insights into market dynamics and investment opportunities.
Leadership and Management Expertise
Under the leadership of R. Patrick Kent, a seasoned investment professional with over 25 years of experience, HELS integrates Hedgeye's macro modeling, quantitative indicators, and security-specific research into a comprehensive investment strategy.
"Patrick is well equipped to help investors navigate an increasingly complex equity landscape," stated Keith McCullough, Founder and CEO of Hedgeye. "HELS leverages our process—Quads, Signals, and risk management—alongside Patrick's seasoned judgment to build a disciplined strategy designed for dynamic market conditions."
R. Patrick Kent emphasized, "Active extension strategies provide investors the opportunity to lean into high-conviction ideas while also expressing negative views with precision. By combining Hedgeye's macro Signals with a structured 130/30 framework, HELS seeks to capture alpha on both sides of the portfolio and deliver a more efficient path to long-term equity growth."
About R. Patrick Kent
R. Patrick Kent brings a wealth of experience to the management of HELS, having held senior positions at prominent firms such as Wellington Management and BNY Mellon. His extensive background in managing long/short, active extension, and thematic global equity portfolios enhances the strategic depth of HELS.
Important Information for Investors
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Hedgeye 130/30 Equity ETF (HELS) before investing. The statutory and summary prospectus contain essential information and can be accessed at hedgeyeam.com/HELS or by contacting +1 (888) 711-8292.
Key risks associated with HELS include:
- Principal loss risk due to market fluctuations.
- Investment management risk due to the inexperience of the adviser.
- Short selling and derivatives risks that can lead to amplified losses.