GTAA ETF to be dissolved at AdvisorShares, Cambria plans relaunch of strategy as GMOM ETF

Charles

Honestly, think this is good news...

Letter yesterday:

Cambria Investment Management, LP and AdvisorShares issued notice today that the two parties plan on separating, and Cambria will move on from sub-advising the Cambria Global Tactical EtF (GTAA) pending board and shareholder approval.

Cambria, as a fiduciary, is committed to offering the best possible investment portfolios to our investors. Cambria will be launching the successor to GTAA, the Cambria Global Momentum EtF (GMOM), at a management fee of 0.59% in the coming months. GMOM is currently subject to an effective registration statement, and we are finalizing the terms of the listing with the NYSE and the SEC.

Cambria has been managing global tactical portfolios since 2007, and together with GMOM we will continue to manage these strategies in separate accounts and private funds.

Cambria has launched three EtFs under our own sponsorship, including the Cambria Shareholder Yield EtF (SYLD), the Cambria Foreign Shareholder Yield EtF (FYLD), and the Cambria Global Value EtF (GVAL).

Here is article on Mebane Faber from last month's commentary: The Existential Pleasures of Engineering Beta.

AndyJ

Hope they plan to tweak the fund strategy; a 3y return of less than 1% annual is probably not going to attract a ton of investors, whether it's under the AdvisorShares banner or Cambria on its own.

scott

GTAA was a disappointment and this sort of trend-following fund often is in mutual fund/ETF form.

I have enough respect for Mebane Faber that I will be happy to take a look at the prospectus for the new fund, but if it's anything like the prior fund....meh.

"Cambria has been managing global tactical portfolios since 2007, "

I'd be curious what the chart of these portfolios look like vs GTAA.