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Goldman Plans ETF To Mimic Hedge Funds… With A Delay

TedTed
in Fund Discussions
FYI: You can make an ETF out of anything. Even hedge fund positions that are at least 45 days old.
Goldman Sachs Group Inc. earlier this month filed a prospectus for a new exchange-traded fund it plans to launch. The product it’s proposing, dubbed the Goldman Sachs Hedge Fund VIP ETF, will track an index of some of the most popular positions held by U.S. hedgies. It’s plan: To track an index of 50 stocks that appear the most in the top 10 holdings of U.S. hedge funds that rely on “fundamental” stock analysis.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2016/02/19/goldman-plans-etf-to-mimic-hedge-funds-with-a-delay/tab/print/

Comments

  • rforno

    Lemmings following news of where the herd WAS before moving on. Nice way for hedgies to sell out of positions to a bunch of clueless buyers who think they're following the smart money ... which they are, but not in the way they expect.
  • MarkMark
    Yup, what could possibly go wrong (for everyone besides GS).
  • Tony
    This is a technique that was proposed in Chapter 8, "Following the Smart Money," of the book "The Ivy Portfolio," published in 2009.
  • catch22catch22
    Hell, it is very possible that most of my investments are always at least 45 days past the optimum entry/exit point. I don't need to pay GS or whomever more money in E.R. to do this work for me!!!
    Don't know about all hedge funds; but the world's largest, Bridgewater (Ray Dalio) has old data about holdings on the internet after a given amount of time and is available for all to read/view.

    Think I'll take a nap.

    Good luck with the money.

    Catch
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