DWSH: 2nd Quarter 2021 Portfolio Manager Review
The AdvisorShares Dorsey Wright Short ETF (Ticker: DWSH) is built on the relative strength testing that Dorsey Wright has been doing for over almost two decades. Rather than investing in those companies that are exhibiting the strongest relative strength however, we identify the bottom tier or laggards and short them. Shorting using relative strength is by no means a new idea, when reading academic literature on momentum from the past 40 years, the idea of buying the past winners and shorting the losers is often found to be a sensible allocation.
Our vision for utilizing the strategy is twofold. First is can be used as a hedge against downside US equity volatility, helping to reduce the volatility of the portfolio by pairing DWSH with a traditional long portfolio. The second is using the strategy as an alpha bet during period of market distress. During period of high dispersion among securities, there are typically well-defined winners and losers. Rather than buying a broad short of the whole market, we systematically invest in companies that are identified to be weak and have a greater chance in our opinion of dropping more than the other companies drop in the universe.
|Ticker||Security Description||Portfolio Weight %|
|SVC||SERVICE PROPERTIES TRUST||-1.88%|
|BF/B||BROWN-FORMAN CORP-CLASS B||-1.16%|
|HLF||HERBALIFE NUTRITION LTD||-1.15%|
|AKAM||AKAMAI TECHNOLOGIES INC||-1.14%|
|BLUE||BLUEBIRD BIO INC||-1.12%|
As of 06.30.2021
As of 06.30.2021.
John G. Lewis
Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright Short ETF (DWSH) Portfolio Manager
Past Manager Commentary