AlphaClone Alternative Alpha ETF (ALFA) Receives Five-Star Morningstar Rating
June 18 2015 - 9:00AM
Business Wire
Recognition comes on the heels of third
anniversary of allowing investors access to high conviction ideas
from established investors
AlphaClone, a leader in building investable equity strategies
based on hedge fund holdings research, announced today that the
AlphaClone Alternative Alpha ETF (NYSE: ALFA), received a 5-Star
Overall Morningstar RatingTM. The ETF, the first of its kind to
track hedge fund holdings, was rated against 25 Large Cap Growth
ETFs for its overall risk-adjusted performance over the three-year
period ending May 31, 2015.
Launched in May 2012, the fund gives investors a rules-based,
efficient way to own equities that established hedge fund managers
believe could outperform traditional market benchmarks. The fund
tracks the AlphaClone Hedge Fund Long/Short Index, which utilizes
AlphaClone's innovative Clones Score methodology to continuously
select which managers and holdings to include as index
constituents. The index employs a rules-based hedge mechanism that
allows the index to vary from being long only to market hedged.
ALFA is a new breed of automated, alpha-seeking strategies that
look to combine the benefits of active management such as the
potential to outperform traditional market benchmarks and the
ability to vary market exposure with the benefits of passive,
rules-based investing.
“ALFA’s 5-Star Morningstar RatingTM is a true testament to our
research capabilities and investment methodology,” said Maz
Jadallah, founder and CEO of AlphaClone. “The fund has over $160
million in assets under management (as of 5/31/2015), which
indicates investors' growing demand for alpha-seeking strategies
that are rules-driven and offered inside the transparency and
efficiency of ETFs.”
For more information about AlphaClone, or for media inquiries,
please visit www.alphaclonefunds.com.
About AlphaClone
AlphaClone is a registered investment advisor and equity
research firm that is a leader in building investable equity
strategies based on hedge fund holdings research. The firm's
investment products and solutions are derived from institutional
investor public disclosures and give investors direct access to
stock positions favored by established hedge funds. The firm's
proven, intelligent, risk managed, portfolio construction approach
seeks to provide liquid, transparent, low-fee strategies that give
investors exposure to the alpha potential inherent in hedge fund
investments. AlphaClone's innovative investment research and
strategies are available to investors through managed accounts, and
exchange-traded products. The firm is based in San Francisco,
California.
© 2015 Morningstar, Inc. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar; (2) may not be
copied or distributed; and (3) is not warranted to be accurate,
complete or timely. Neither Morningstar nor its content providers
are responsible for any damages or losses arising from any use of
this information.
For each fund with at least a three-year history, Morningstar
calculates a Morningstar Rating™ based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a
fund’s monthly performance (including the effects of sales charges,
loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of
funds in each category receive 5 stars, the next 22.5% receive 4
stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars
and the bottom 10% receive 1 star. The Overall Morningstar Rating
for a fund is derived from a weighted average of the performance
figures associated with its three-, five- and ten-year (if
applicable) Morningstar Rating metrics. The AlphaClone Alternative
Alpha ETF was rated against the 25 U.S.-domiciled Large Cap Growth
ETFs over the 3-year period ending May 31, 2015. With respect to
these Large Cap Growth ETFs, the AlphaClone Alternative Alpha ETF
received a Morningstar Rating of 5-stars for the three-year period.
Past performance is no guarantee of future results.
The fund's investment objectives, risks, charges and expenses
must be considered carefully before investing. The prospectus
contains this and other important information about the investment
company, and it may be obtained here. Read it carefully before
investing.
Investments involve risk. Principal loss is possible. Gross
Expense Ratio = 0.95%. The AlphaClone Alternative Alpha Fund 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. The fund can make short sales of
securities, which involves the risk that losses in securities may
exceed the original amount invested in a security. Investments by
the fund in derivatives involve risks different from, and in
certain cases, greater than the risks presented by more traditional
investments. The fund is non-diversified, meaning it may
concentrate its assets in fewer individual holdings than a
diversified fund. 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. REITs and MLPs may
involve higher fees and charges. The performance of the Fund may
diverge from that of the Index. Because the Fund employs a
representative sampling strategy, it may experience tracking error
to a greater extent than a fund that seeks to replicate an
index.
The AlphaClone Hedge Fund Long/Short Index represents equity
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. Alpha is the abnormal return on a security or
portfolio in excess of what would be predicted by an equilibrium
model like the Capital Asset Pricing Model (CAPM).
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.
The AlphaClone Alternative Alpha Fund is distributed by Quasar
Distributors LLC. The fund's investment advisor is Exchange Traded
Concepts LLC which is not affiliated with the index owner,
AlphaClone, or Quasar Distributors. AlphaClone and the Fund are in
no way affiliated with the hedge funds or institutional investors
whose public disclosure filings are utilized to derive investment
decisions.
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version on businesswire.com: http://www.businesswire.com/news/home/20150618005348/en/
Gregory FCA for AlphaCloneLauren Davis,
610-228-2103ise@gregoryfca.com
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