Doug Kass: Invest Like a Hedge Fund With This ETF
TheStreet Premium Services
A complimentary preview
of Real Money
This column originally appeared on Real Money Pro at 7:33 a.m. EDT on Oct. 16.
The AdvisorShares QAM Equity Hedge ETF (QEH) seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge Total Index constituents, in an effort to produce higher returns with lower risk than the S&P 500 Index over time. QEH is managed by Commerce Asset Management ("Portfolio Manager"). The Portfolio Manager seeks to achieve the objective by employing an actively managed long/short equity strategy that attempts to gain global net equity exposures that approximate those of the universe of managers in the HFRI Equity Hedge Total Index. Additionally, the Portfolio Manager, utilizes advanced algorithms including Markov Processes International's ("MPI") proprietary and patented style analysis technique and associated algorithms, DSA ("Dynamic Style Analysis"), patented hedge fund analysis software, combined with the Portfolio Manager's qualitative knowledge of the hedge fund investor community to develop investment strategies. -- "How QEH Works," from AdvisorShares websiteHere is a fact sheet on QEH, here is a profile of the composition of the QEH's holdings, and here is a chart of QEH's performance from inception. On a back-tested basis and from inception this year, QEH has had a low tracking error and has outperformed the HFRI hedge fund universe. I recently spent some time with the investment manager of this product, and I am confident that this trend of outperformance will likely continue.
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.