New Fund Alert

Just a couple of quick hits tonight. 

Unlimited Funds just launched the Unlimited Global Macro ETF (HFGM). The interesting thing is that it is trying to be more volatile than other global macro funds. I don't know how frequently the holdings will change but looking at it today, it is short several currencies but long Australian dollar, it is long commodities and very long gold, long European equities and short Japan and it's long US equities along with a few other smaller positions. 

You can kind of make out the overall positioning as kind of a risk on plus commodities but again, it is not clear how frequently things will change. Given that macro strategies can be very idiosyncratic, I'm not sure how you buy it here other than to make a bet on Bob Elliott who runs Unlimited. That might be a great bet but as an alt, there really isn't much of an expectation of what it will do. For example, convertible arbitrage would be a horizontal line that tilts upward.

ETF Hearsay Tweeted out about a mutual fund conversion of the SIMT Liquid Alternative Fund which has two symbols; LLOAX and LLOBX. The strategy replicates the 50 largest hedge funds and 20 managed futures funds. The fund is pretty new but with a description like that, I'm going to want to hear more about it.

MERIX is merger arbitrage and is a client and personal holding. LLOAX looks like a more volatile version of MERIX but then wilted in the current market event. Replication is a valid approach based on research I've seen over the years but I think maybe it is very difficult to do? Fifty hedge funds and 20 different managed futures programs might be too much to net out into something useful.

With multistrategy, you really need to pick and choose your spots. 

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