MARBLEHEAD, Mass., April 4, 2018 /PRNewswire/ -- Investment firm Little Harbor Advisors, LLC has launched its first exchange-traded fund. The fund uses Bayesian statistical techniques to infer the probability of change in price direction of the broad U.S. equity market. The LHA Market State™ U.S. Tactical ETF (Ticker Symbol: MSUS) applies these techniques to the U.S. equity market to manage the net-long exposure of the MSUS ranging between zero (out of the market) and 160%.
MSUS seeks to provide investment results that exceed the total return performance of the broader U.S. equity market on a risk-adjusted basis. MSUS will attempt to achieve this objective by seeking to reduce net exposure to the U.S. equity market in order to minimize losses in market downdrafts and to enhance net exposure and returns during market rallies. The statistical techniques employed look at the changing distribution of price movements in the S&P® 500 as described by the four moments of a distribution. The fund seeks to take advantage of statistical indications of growing left-tail risk and increasing volatility by trimming net exposure in a timely fashion, or to take advantage of statistical indications of positive skew to enhance returns by opportunistically increasing net exposure to greater than 100%.
The LHA Market State™ Fund I, LP, a private fund, will make an investment of approximately U.S. $6 million into the new ETF.
According to Little Harbor's Chief Investment Officer-Jeff Landle, CFA, "Investors seeking long-term exposure to the U.S. equity market generally have a choice between 100% long 100% of the time, and/or a systematic approach to exposure management in an effort to deliver better risk-adjusted returns by attempting to avoid unfavorable market conditions while taking advantage of more favorable times. To maximize returns investors want to not only generate gains when the market goes up, but, importantly, to lessen losses when the market goes down."
ABOUT Little Harbor Advisors, LLC
Little Harbor Advisors, LLC is a boutique investment firm with a focus on quantitative investment solutions and investment structures for institutional investors, financial advisors, and portfolio managers. For more information, please visit www.littleharboradvisors.com.
Grier Park, LLC
Please refer to the MSUS Prospectus for important information, including the fund's objectives, risks, charges, and expenses. Read and consider the Prospectus and related documents carefully before investing. You may obtain a hard copy of the Prospectus by visiting www.lhafunds.com or by calling Little Harbor Advisors, LLC at 781.639.3000 (ext.147).
This information is not intended as a solicitation to buy or sell an interest in any investment fund or for the provision of any investment management or advisory services. An investment in the Fund is subject to risk, including the possible loss of the principal amount invested. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund will use future contracts which have risks, including the imperfect correlation between the value of such instruments and the underlying assets and the potential loss of principal. The potential loss of principal in regard to futures contracts can be in amounts greater than the initial amount invested in the futures contract. Because the Fund may "turn over" some or all of its portfolio as frequently as daily, the Fund may incur high levels of transaction costs, which could reduce shareholder returns. The Fund will invest in other ETFs that may invest in small- and mid-cap companies which involves additional risks such as limited liquidity and greater volatility.
Left-tail risk represents a greater chance of a negative movement in a distribution curve. The S&P® 500 is a market capitalization-weighted index of 500 large companies in leading industries of the U.S. economy.
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
SOURCE Little Harbor Advisors, LLC