12/28/2012 -
AdvisorShares Press Release, AdvisorShares Announces December 2012 Distributions
(SSAM) Rockledge SectorSAM ETF
Overview
How SSAM Works
The AdvisorShares Rockledge SectorSAM ETF (SSAM) seeks to generate stable and consistent annual returns under all market conditions. The Fund seeks to accomplish this by investing primarily in both long and short positions in U.S. sector ETFs that offer diversified exposure to U.S. large capitalization sectors. SSAM is managed by Rockledge Advisors (“Portfolio Manager”).
The Portfolio Manager seeks to achieve the objective by employing an actively managed and diversified, equity sector rotation process. The Fund will be buying (being long) the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling (being short) an equal dollar amount of sector ETFs that they forecast to underperform the S&P 500, based on a proprietary quantitative analysis known as the “Sector Scoring and Allocation Methodology” (SectorSAM). The Fund expects to hold equal amounts long and short, thus creating a dollar neutral portfolio.
Fund Documents
Financial Professional Documents
Portfolio Manager Commentaries
- January 2013 Portfolio Manager's Commentary
This document is for logged in users only. Please login or register for access. - December 2012 Portfolio Manager's Commentary
This document is for logged in users only. Please login or register for access.
SSAM in the News
The following reprints should not be construed as an offer to sell or a solicitation of an offer to buy shares of any other funds. They are provided for informational purposes for AdvisorShares only.
12/13/2012 - Pairitz, Carolyn. "Head-To-Head: SSAM Vs. HUSE." http://etfdb.com/2012/head-to-head-ssam-vs-huse/
10/12/2012 - Dutram, Eric. "Barclays Debuts ETF Based on PE Ratios." http://www.zacks.com/stock/news/84659/barclays-debuts-etf-based-on-pe-ratios
09/28/2012 - Dutram, Eric. "Active Large Cap ETFs: The Best of Both Worlds?" http://www.zacks.com/stock/news/83807/active-large-cap-etfs-the-best-of-both-worlds
07/19/2012 -
Spence, John. "Market-Neutral ETF Targets Sector Rotation Strategy." etftrends.com.
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Performance -Quarter-End
SSAM Performance History (%) as of 03/31/2013
| NAV | Market Price Return | BofA Merrill Lynch 3-Month Treasury Bill Index | |
|---|---|---|---|
| 1 Month | 0.60 | 0.69 | 0.02 |
| 3 Month | 0.52 | 1.89 | 0.02 |
| YTD | 0.52 | 1.89 | 0.02 |
| 1 Year | -1.82 | -1.97 | 0.12 |
| Since Inception (01/11/2012, Annualized) | -0.61 | -0.70 | 0.10 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.
The BofA Merrill Lynch 3-Month Treasury Bill Index is an unmanaged index comprised of a single issue purchased at the beginning of the month and held for a full month. One cannot invest directly in an index.
Performance -Month-End
SSAM Performance History (%) as of 04/30/2013
| NAV | Market Price Return | BofA Merrill Lynch 3-Month Treasury Bill Index | |
|---|---|---|---|
| 1 Month | 2.56 | 2.61 | 0.01 |
| 3 Month | 2.93 | 2.85 | 0.03 |
| YTD | 3.10 | 4.55 | 0.03 |
| 1 Year | 2.36 | 2.00 | 0.12 |
| Since Inception (01/11/2012, Annualized) | 1.38 | 1.32 | 0.10 |
Fund Distributions
| Ex-Date | Record Date | Pay Date | Cash Div | ST Cap Gain | LT Cap Gain | Return of Capital | Total Distribution |
|---|---|---|---|---|---|---|---|
12-27-13 | 12-31-13 | 01-03-14 | - | - | - | - | - |
12-27-12 | 12-31-12 | 01-03-13 | $0.00 | $0.379 | $0.00 | $0.00 | $0.379/per share |
Why Invest in SSAM?
- To Gain Exposure to Alternative Investments - SSAM may be suitable for investors wishing to access long and short alternative investment strategies. (The Fund may not be suitable for all investors.)
- For a Hedged Equity Portfolio - SSAM may provide lower volatility than major US Large Capitalization benchmarks. An ETF with a hedged equity strategy and a dollar neutral portfolio like SSAM seeks to potentially generate positive returns in all market conditions.
- For Access to a Strategy that is Non-Correlated to Equity Markets - SSAM seeks to provide non-correlated returns to long only equity strategies and provide broad diversification to a long only domestic equity strategy.
- To Take Advantage of Divergent Sector Returns - The nine sector ETFs that correspond to the nine U.S. economic sectors can have widely different returns. The Fund seeks to identify which sectors will outperform the S&P 500 Index and which will underperform over a specified time period which can lead to cumulative returns.
5 Key Attributes
- Sector Focus - Because the U.S. economy goes through various growth cycles, one sector may outperform another. The economic market and business cycles continuously provide relative sector return variation; meaning that by focusing on sectors, alpha may be available relative to the combined return of all the sectors, which is the S&P 500 Index.
- Lower Risk Investing - Sector investing may provide a better risk/return profile by eliminating company-specific risks, since a sector ETF, as a basket of stocks is inherently diversified.
- Quantitative Sector Investing Strategy - SectorSAM analysis provides for individual sector forecasts through an analysis of over two hundred fundamental, macroeconomic and technical factors that influence individual stock returns. This creates a basket of factors that are meaningful to each economic sector within the S&P 500 Index, which the portfolio manager analyzes for decisions on which undervalued sectors to buy and which overvalued sectors to sell.
- Dollar Neutral - SSAM is normally, but not always, dollar neutral, meaning that the value of all long positions is equal to the value of all short positions. Being dollar neutral can reduce portfolio volatility. The short positions provide protection against market declines, and may offer the potential to generate positive returns when markets are falling if the short positions fall more than the long positions. Being dollar neutral reduces correlation to broad equity indices.
- Sector Investing Expertise - The Portfolio Manager is highly qualified to manage sector strategies, based on their having managed institutional assets utilizing various sector rotation strategies, along with extensive institutional investment experience.
About the Portfolio Manager
Alex Gurvich – Managing Partner & Portfolio Manager
Alex Gurvich co-founded The Rockledge Group and Rockledge Advisors and has been managing these strategies for the past seven years. Prior to founding The Rockledge Group LLC, Mr. Gurvich was a venture capitalist with General Electric’s GE Capital. Mr. Gurvich started his business career as a management consultant with Bain & Company. Before business school, Mr. Gurvich worked as an engineer/physicist, with a French high tech scientific instrumentation start up, and had worked in the medical physics laboratory at Harvard University.
Mr. Gurvich holds a BA in Physics from the University of Chicago and two Masters Degrees – a MBA from INSEAD and a MS in Financial Engineering from New York University Polytechnic Institute. He is also a graduate of the Venture Capital Institute. He is currently a candidate for PhD in the Financial Engineering program at Stevens Institute of Technology. Mr. Gurvich is an Adjunct Professor of Finance at Pace University, Lubin School of Business.
Fund Basics
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Symbol
SSAM
-
Exchange
NYSE Arca
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Inception Date
01/11/2012
-
CUSIP
00768Y792
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Indicative Value
SSAM.IV
-
Options
No
Price History
As of: 05/16/2013
| NAV | $24.47 | Closing Price | $24.73 |
| Change | $-0.31 | Change | |
| Shares Outstanding | 50,000 | Volume | |
| 4PM Bid/Offer Midpoint | $24.79 | Premium/Discount | $0.32 |
| Assets Under Management | $1,223,577.56 | ||
| Premium/Discount Historical Data | |||
Top Long Holdings (Log in above to view all holdings)
As of: 05/16/2013
| Ticker | Name | Weight |
|---|---|---|
| XLF | FINANCIAL SELECT SECTOR SPDR FUND | 20.32% |
| XLP | CONSUMER STAPLES SELECT SECTOR SPDR | 20.30% |
Top Short Holdings (Log in above to view all holdings)
As of: 05/16/2013
| Ticker | Name | Weight |
|---|---|---|
| XLK | TECHNOLOGY SELECT SECTOR SPDR | -48.32% |
| XLE | ENERGY SELECT SECTOR SPDR | -23.81% |
Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Holdings and allocations are subject to risks and to change. A holding identified with an "MM" at the end of its name indicates it is a Money Market fund.
Fees & Expenses
-
Management Fee
1.25%
-
Short Interest Expense
1.60%
-
Other Expenses
8.18%
-
Acquired Fund Fees
0.01%
-
Gross Expense Ratio
11.04%
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Fee Waiver and/or Expense Reimbursement
7.93%
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Net Expense Ratio
3.11%*
- *The Advisor has contractually agreed to keep net expenses from exceeding 1.50% for at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual reapproval of the agreement by the Board of Trustees This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Short Interest Expenses.”