Following the launch of Emles' Alpha Opportunities ETF (EOPS), Chief Executive Officer, Gabriel Hammond, and EOPS portfolio manager, Nathan Miller, sat down with Grace Chung of Institutional Investor to discuss making alternatives more accessible to investors.
"The idea of “democratizing” alternatives has been an area of growing interest for asset managers seeking to get their products to a wider audience beyond institutions," wrote Grace.
When asked why few alternative managers have yet to enter the ETF space, Hammond responded:
“The biggest challenge is on the structuring side. Because these products haven’t been made before, because market makers and Authorized Participants ("APs") don’t traffic in these products, there’s a lot of novelty when it comes to regulatory, execution and other issues."
Emles recently expanded its suite of ETF offerings with the introduction of a strategy typically reserved for hedge funds - the Alpha Opportunities ETF (EOPS). 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.
“EOPS provides investors the opportunity to access a true long/short hedge fund strategy and its potential returns through the transparent liquid structure of an ETF,” said Nathan Miller, Portfolio Manager at Emles.
Please note: The claim 'hedge-fund style' represents that this particular investment strategy typically may be packaged in a hedge fund vehicle.