Friday, 12 February 2016
Last updated 19 hours ago
Mar 12 2014 | 7:41am ET
New York-based Global X Funds has launched small cap and international best ideas exchange-traded funds based on the 13F filings of a select group of hedge funds and institutional investors.
The new funds join the flagship Global X Guru Index ETF, which launched in June 2012 and now manages over $500 million.
The two new funds tap into the highest conviction ideas found in the 13F filings. The Global X Guru Small Cap Index ETF (GURX), which tracks the Solactive Guru Small Cap Index, will invest in 100 equally weighted companies with a market capitalization between $100 million to $3 billion.
The Global X Guru International Index ETF (GURI), tracking the Solactive Guru International Index, will invest in the top international holdings from this group of managers. GURI will have 50 equally weighted holdings and gain its international exposure through ADRs and other international companies listed on 13Fs.
“There is a strong foundation in academic literature for the value of 13F filings” said Bruno del Ama, chief executive officer of Global X Funds and portfolio manager for the funds, in a statement. “To properly derive this value, however, you need a well-defined methodology that filters for the right information. There’s a lot of data out there, and the Guru funds are designed to invest only in the stocks where we believe the value of this information is greatest.”
“The latest round of filings shows that many hedge fund managers continue to move out of cyclical stocks and take more defensive positions,” said Jay Jacobs, research analyst at Global X Funds. “The methodologies utilized by the Guru funds strive to eliminate the noise in 13F filings and uncover where these managers are focusing their investments.”
Global X is a New York-based sponsor of exchange-traded funds with $3.2 billion in assets under management as of March 1, 2014. Global X offers ETFs that target income, international, commodity producers, industry and alternative fund suites.