Bob Elliott, formerly of Bridgewater Associates LP, is introducing a range of exchange-traded funds (ETFs) under his firm, Unlimited, that replicate the performance of various hedge fund strategies. The new lineup aims to provide retail investors access to sophisticated strategies like equity long-short, global macro, and low beta, all at a lower cost compared to traditional private funds. The firm’s initial offering, the Unlimited HFND Multi-Strategy Return Tracker ETF, utilizes machine learning to incorporate different styles. Each fund will primarily invest in ETFs and futures contracts, utilizing an algorithm based on historical returns and positioning data. While the move is praised for offering diversification opportunities, concerns arise about potential performance chasing tendencies among retail investors.
Former Bridgewater Executive Expands ETF Lineup with Hedge Fund-Like Strategies
ETF Newz Says:
This expansion occurs amid a year when many hedge funds are underperforming conventional markets, affecting investor sentiment.