Blue Tractor Group has received notice from the SEC to license their semi-transparent ETF model to investment managers who offer long/short portfolios.
Terry Norman, Blue Tractor Group founder, says: “At the present time semi-transparent ETFs can only license investment strategies that take long only positions i.e. they purchase the physical security.
“We can now license to investment managers who run long/short investment strategies i.e. those who look to generate additional alpha via taking short positions and reinvesting the cash those short positions yield.
“This now opens up the semi-transparent ETF space to hedge fund managers and those who run long/short portfolios but don’t want predatory traders or ‘copycat’ funds either front running their trades or running near identical funds.”
Norman concludes: “It’s also another step toward parity between transparent and semi-transparent ETFs.”