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Products May 31, 2012
Exchange Traded Concepts Introduces ETF to Invest in Hedge Fund Equity Positions
The AlphaClone Alternative Alpha ETF (exchange-traded fund) aims to include exposure to alpha-generating equity positions, Exchange Traded Concepts LLC said.
Reported by Jill Cornfield
The fund tracks the rules-based AlphaClone Hedge Fund Long/Short Index. This index directly selects long positions from hedge funds’ public disclosures using AlphaClone’s Clone Score ranking. Proprietary methodology measures the efficacy of following managers based on their disclosures over a complete market cycle.
The index uses a rules-based hedging strategy that adjusts holdings between being long only and market-hedged based on price targets for a broad index of U.S. equities.
AlphaClone LLC, the fund’s index provider, was among the earliest to work with the multiple series trust established by Exchange Traded Concepts and U.S. Bancorp Fund Services LLC.
Exchange Traded Concepts serves as investment adviser. Index Management Solutions LLC is the sub-adviser.
More information is available here.