The AlphaClone Alternative Alpha ETF (NYSE: ALFA) has begun trading today, launched by Exchange Traded Concepts and AlphaClone LLC.
Exchange Traded Concepts, LLC, serves as investment adviser, while Knight Clearing Services LLC is lead market maker. The fund is managed by sub-adviser Index Management Solutions, and charges a management fee of 70 basis points.
Both companies say that the ETF is the first to invest in disclosed equity positions held by established hedge fund managers. It seeks to capture alpha from these managers’ long positions while protecting against protracted market downturns through a dynamic hedge mechanism.
“AlphaClone offers our separate account clients strategies that expertly combine long hedge fund equity positions with disciplined downside protection,” stated Mazin Jadallah, founder and CEO of AlphaClone. “With the introduction of ALFA, investors around the world can now access our proven investment approach in a transparent and easy to access vehicle that can help navigate today’s challenging market environment.”