Recent regulatory rule changes, combined with lasting investor interest in ETFs, are starting to upset the longstanding assumption that passive is the only game in town for ETFs. Emles' Chief Executive Officer, Gabriel Hammond, and EOPS portfolio manager, Nathan Miller, discussed the recent uptick of active ETF launches – including the Emles Alpha Opportunities ETF (EOPS), - with Claire Ballentine of Bloomberg.
"It’s a comeback of sorts for stock pickers, and in an unlikely corner of Wall Street... But a combination of new rules and the enduring popularity of ETFs with investors means a slow but major shift is underway," wrote Claire about the growth of active ETFs.
When asked why Emles decided to package its' Alpha Opportunities strategy within the ETF wrapper, portfolio manager Nathan Miller responded:
“It’s almost impossible to start a small to medium hedge fund as a single manager. So we thought why go launch another hedge fund? Let’s launch an actively managed ETF.”
The Emles Alpha Opportunities ETF (EOPS) is an equity long/short strategy that combines deep value investing and catalyst trading. The fund invests in value stocks of North American companies, with a focus on “old economy” sectors like industrials, consumer discretionary and materials, and has the ability to take both long and short positions, which allows for return potential and risk management on both sides of the equation.
“The Emles Alpha Opportunities ETF (EOPS)… is one of the more recent active arrivals. It listed less than two weeks ago and already has about $66 million in assets,” wrote Claire Ballentine.