LOS ANGELES, Nov. 4, 2014 /PRNewswire/ -- The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, today launched the Cambria Global Momentum ETF (Ticker: GMOM), which utilizes a quantitative approach to actively manage a diversified portfolio of world asset classes. The fund is based on the insight that sorting assets based on trailing measures of momentum and trend has historically led to outperformance.
GMOM is listed on the NYSE Arca exchange and is comprised of 17 holdings which represent the top 33% of a universe of approximately 50 ETFs. The holdings are selected on measures of trailing momentum and trend. By sorting through a basket of domestic and foreign stocks, bonds, real estate, commodities and currencies, the strategy targets aggressive returns while still managing risk and volatility.
In traditional long-only strategies, investors are at risk of exposure to long bear markets. In times of increased volatility and bear cycles, GMOM shifts investors into potentially less volatile assets like cash and bonds when the high momentum ETFs are trading below their long-term trend metrics.
"The Cambria Global Momentum ETF seeks to take advantage of momentum and trend in a systematic way in an attempt to protect investors from emotional decision making," said Mr. Faber. "The fund attempts to achieve better than equity like returns while still having strict risk control methods."
Eric Richardson, Cambria's Chief Executive Officer, added: "GMOM's foundation is based on comprehensive research and a carefully crafted approach of management that capitalizes on Meb Faber's white paper, A Quantitative Approach to Tactical Asset Allocation. The white paper and the subsequent book The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets show that sorting assets based on trailing measures of momentum and trend has led to outperformance. The new fund fits in well with the suite of innovative strategic-beta ETFs that Cambria has already launched."
ABOUT CAMBRIA INVESTMENT MANAGEMENT, LP
Cambria Investment Management, LP, based in Los Angeles, California, is a SEC registered investment management firm employing a disciplined multi-asset, global quantitative research process. Cambria provides investment management services to high net worth individuals and institutions through separately managed accounts, private funds, and public exchange-traded funds. Cambria is also the investment manager of the Cambria Shareholder Yield ETF (NYSE: SYLD), the Cambria Foreign Shareholder Yield ETF (NYSE: FYLD) and the Cambria Global Value ETF (NYSE: GVAL). Global diversification through asset allocation, coupled with prudent risk management, is the foundation of Cambria's investment philosophy. For more information, please visit www.cambriainvestments.com and www.cambriafunds.com. Meb Faber can be followed @MebFaber.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-855-ETF-INFO, or by visiting www.cambriafunds.com. Read the prospectus carefully before investing.
There is no guarantee that the Fund will achieve its investment goal. Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from social, economic, or political instability in other nations. These risks are especially high in emerging markets. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Investments in commodities are subject to higher volatility than more traditional investments. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. The use of leverage by the fund managers may accelerate the velocity of potential losses. The Fund employs a "momentum" style of investing that emphasizes investing in securities that have had higher recent price performance compared to other securities. This style of investing is subject to the risk that these securities may be more volatile than a broad cross-section of securities or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing or the overall stock market. Investments in smaller companies typically exhibit higher volatility
Diversification may not protect against market loss.
Cambria Investment Management, LP serves as an advisor to the Cambria ETF Trust. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Cambria Investment Management, LP or any of its affiliates.
SOURCE Cambria Investment Management, LP