Exchange-traded funds house AdvisorShares is preparing a second hedge fund-like ETF to track long/short equity hedge funds.
The Bethesda, Md.-based firm's QAM Equity Hedge ETF is designed to best the returns of the bottom half of hedge funds managing the strategy. Commerce Asset Management will develop the ETF's strategy, using Markov Processes International's technology and the HFRI Equity Hedge Fund Index.
"Such investment products have previously been beyond the reach of the average investor due to high minimum investment thresholds," AdvisorShares CEO Noah Hamman said.
"We feel that Commerce, along with its relationship with MPI, presents a compelling opportunity for us to bring a very unique alternative investment solution to the advisor community whose clients are looking to achieve higher returns and lower risk—all wrapped in an affordable actively managed ETF structure."
AdvisorShares did not say what QEH's expense ration would be. The fund will have about 50 long and short positions, investing in other ETFs and exchange-traded notes. No position can exceed 10% of its portfolio.
AdvisorShares launched its short-only Active Bear ETF—with the ticker symbol "HDGE"—earlier this year.