HDGE - AdvisorShares Ranger Equity Bear ETF

Fundamental Short Selling

Use forensic accounting based methodology to uncover securities with earnings quality deterioration or aggressive accounting practices

Symbol Exchange Inception Date CUSIP NAV Indicative Value Options Available
HDGE NYSE Arca 1/26/2011 00768Y 412 HDGE.NV HDGE.IV Yes
About The ETF

The investment objective of the AdvisorShares Ranger Equity Bear ETF (NYSE Arca: HDGE) is capital appreciation through short sales of domestically traded equity securities. HDGE is sub-advised by Ranger Alternative Management, L.P. (“Portfolio Manager”). The Portfolio Manager implements a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the Portfolio Manager seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance.

Why Invest in HDGE?
  • As a Tool to Hedge Equity Exposure – HDGE can be used as part of a long/short strategy in which an investor may synthetically integrate by pairing HDGE with a long-index ETF (or an investor’s portfolio of long positions), providing the investor with a “buy and hold” option to hedge their long domestically-traded equity exposure.
  • For Diversified Portfolio Construction – The Portfolio Manager’s portfolio construction process emphasizes diversification across a number of industries and specific companies with a special focus on catalysts that drive lower stock returns. The portfolio typically consists of between 20-75 equity short positions, with an average position size of between 2% and 7% of the portfolio exposure.
  • For a Fundamental Investment Process – The Portfolio Manager utilizes accounting metrics across the income statement, cash flow statement and balance sheet to identify companies with low earnings quality or possible aggressive accounting practices. These factors may suggest operational deterioration in a company’s business. Qualitative analysis is also considered. An assessment of the management team, accounting practices, corporate governance and the company’s competitive advantage are analyzed before a company is included as part of the HDGE portfolio.
Key Attributes
  • Disciplined, Repeatable Investment Process – The forensic accounting based methodology the Portfolio Manager utilizes is a disciplined, consistent investment approach to both security selection and risk management. Like an investigative auditor, a forensic accountant dissects a company’s financial statements, crunching the numbers searching for evidence in the data that may suggest operational deterioration or manipulative sales and revenue recognition, rather than focusing on fad products or broken business models to identify domestically-traded equity stocks that are expected to underperform.
  • Experience – The Portfolio Manager has experience trading and managing short portfolios with the ability to tactically allocate to liquid, low short interest stocks of companies which may be masking operational deterioration.
  • Market Analysis – Top-down technical evaluation of broader market liquidity, sentiment and breadth is utilized to help identify short and intermediate term market trends, manage exposure and mitigate risk.
  • Specialized Strategy – Effectively shorting individual securities requires an approach very different from a traditional long-only strategy. HDGE is a very specialized product managed by investment professionals with years of short selling experience as opposed to another fund that might not have the HDGE ETF Product Manager’s shorting expertise.
About the Portfolio Manager

John Del Vecchio, CFA – Portfolio Manager/Principal
Mr. Del Vecchio serves as a Portfolio Manager for Ranger Alternative Management, L.P. (“Ranger”). Mr. Del Vecchio managed short only portfolios for Ranger from October, 2007 through March, 2010. He also serves as principal and founder of Parabolix Research, LLC, a short-only research firm. From 2003-2007, Mr. Del Vecchio served as an Analyst with David W. Tice & Associates / Behind the Numbers, LLC selecting short sale opportunities utilizing forensic accounting research on behalf of institutional clients and the Prudent Bear Fund. In 2002, Mr. Del Vecchio served as a portfolio manager for RedHawk Advisors, LLC with responsibility for managing the short sale allocation of the fund. In 2001, Mr. Del Vecchio served as an Analyst for the Center for Financial Research and Analysis (CFRA) performing forensic accounting analysis for short sale opportunities. Mr. Del Vecchio earned a B.S. in Finance, Summa Cum Laude, from Bryant College, and was awarded Beta Gamma Sigma honors. Mr. Del Vecchio earned the right to use the Chartered Financial Analyst designation in September, 2001.

Brad H. Lamensdorf – Portfolio Manager/ Principal
Mr. Lamensdorf serves as a Portfolio Manager for Ranger Alternative Management, L.P. (“Ranger”) and provides trading and market strategy for Ranger’s short only portfolio. Mr. Lamensdorf has served as a Trading and Market Strategist for Ranger since 2009. Mr. Lamensdorf also serves as a principal of Precisian GP, LLC and Portfolio Manager of Precisian Partners L.P., both positions of which he has held since November 2007. Prior to Precisian, Mr. Lamensdorf founded BHL Partners L.P. a commodity oriented hedge fund primarily focused on gold and gold equities. From 1998 through 2005, Mr. Lamensdorf served as principal and portfolio manager for Tarpon Capital Management, L.P., which managed long/short hedge funds. In 1997, he was a founder, partner and co-manager of KBH, L.L.P., an investment firm created to manage investment portfolios for the King-Hughes family. From 1992 through 1996, Mr. Lamensdorf worked on the equity trading desk for the Bass family in Fort Worth, Texas, where he co-managed an extensive equity portfolio with emphasis on short selling and derivatives strategies. He also provided market analysis for fund managers throughout the Bass network. Mr. Lamensdorf received a B.A. in psychology from the University of Texas at Austin in 1992.

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HDGE Overview

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HDGE Overview

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Fund

Price History

Fund Data

12/5/2024
NAV $17.07
Change $0.22
Shares Outstanding 2,837,500
Assets Under Management $48,438,220.30

 

 

 

 

Market Data

12/5/2024
Closing Price $17.03
Close Change $0.20
Volume 128,491

Regulatory Data

12/5/2024
Premium Discount $-0.03
30-Day Median bid-ask Spread 0.176419
Premium/Discount Historical Data | NAV Historical Data | Daily Premium/Discount Historical Data

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.

FUND

Characteristics

As of 10/31/2024

Source: Morningstar & AdvisorShares

FUND

Performance

As of 11/30/2024

  NAV Market Price Return S&P 500 Index
1 Month -10.03 -9.84 5.87
3 Months -11.51 -11.45 7.15
YTD -11.90 -12.00 28.07
1 Year -21.64 -21.72 33.89
3 Years -9.95 -10.00 11.44
5 Years -20.26 -20.25 15.77
10 Years -16.60 -16.60 13.35 
Since Inception (1/26/2011, Annualized) -17.13 -17.14 13.90

As of 9/30/2024

  NAV Market Price Return S&P 500 Index
1 Month -2.00 -1.94 2.14
3 Months -9.51 -9.72 5.89
YTD -2.42 -2.56 22.08
1 Year -12.69 -12.72 36.35
3 Years -7.37 -7.36 11.91
5 Years -20.76 -20.78 15.98
10 Years -16.12 -16.13 13.38
Since Inception (1/26/2011, Annualized) -16.70 -16.71 13.68

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. 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.

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Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security ID Security Description Shares Share Price Market Value Portfolio Weight Asset Group
12/05/2024 HDGE XHB 78464A888 SPDR S&P HOMEBUILDERS ETF -14,000 118.71 -1,661,940.00 -3.43% MF
BRZE 10576N102 BRAZE INC-A -30,000 41.29 -1,238,700.00 -2.56% S
HUM 444859102 HUMANA INC -4,000 283.06 -1,132,240.00 -2.34% S
CACC 225310101 CREDIT ACCEPTANCE CORP -2,300 471.57 -1,084,611.00 -2.24% S
VYX 62886E108 NCR VOYIX CORP -70,000 14.04 -982,800.00 -2.03% S
LGIH 50187T106 LGI HOMES INC -9,000 105.71 -951,390.00 -1.96% S
MEOH 59151K108 METHANEX CORP -20,000 47.09 -941,800.00 -1.94% FS
MRTN 573075108 MARTEN TRANSPORT LTD -55,000 17.01 -935,550.00 -1.93% S
WK 98139A105 WORKIVA INC -9,000 100.80 -907,200.00 -1.87% S
IPGP 44980X109 IPG PHOTONICS CORP -12,000 75.19 -902,280.00 -1.86% S
NDSN 655663102 NORDSON CORP -3,500 254.58 -891,030.00 -1.84% S
CMA 200340107 COMERICA INC -12,500 69.92 -874,000.00 -1.80% S
TTC 891092108 TORO CO -10,000 86.09 -860,900.00 -1.78% S
PLAB 719405102 PHOTRONICS INC -35,000 24.26 -849,100.00 -1.75% S
ALGM 01749D105 ALLEGRO MICROSYSTEMS INC -40,000 20.83 -833,200.00 -1.72% S
LKQ 501889208 LKQ CORP -20,000 39.72 -794,400.00 -1.64% S
DLB 25659T107 DOLBY LABORATORIES INC-CL A -10,000 79.32 -793,200.00 -1.64% S
OTEX 683715106 Open Text Corp -25,000 31.65 -791,250.00 -1.63% FS
NTST 64119V303 NETSTREIT CORP -50,000 15.72 -786,000.00 -1.62% S
ULTA 90384S303 ULTA BEAUTY INC -2,000 392.87 -785,740.00 -1.62% S
DKNG 26142V105 DRAFTKINGS INC-CL A -17,500 44.84 -784,700.00 -1.62% S
QSR 76131D103 RESTAURANT BRANDS INTERN -11,030 69.74 -769,232.20 -1.59% FS
CBRL 22410J106 CRACKER BARREL OLD COUNTRY -15,000 51.06 -765,900.00 -1.58% S
FCFS 33768G107 FIRSTCASH HOLDINGS INC -7,000 105.97 -741,790.00 -1.53% S
FORM 346375108 FORMFACTOR INC -18,000 41.04 -738,720.00 -1.53% S
DAN 235825205 DANA INC -60,000 12.28 -736,800.00 -1.52% S
MGM 552953101 MGM RESORTS INTERNATIONAL -20,000 36.84 -736,800.00 -1.52% S
HELE G4388N106 HELEN OF TROY LTD -10,000 72.25 -722,500.00 -1.49% FS
JKHY 426281101 JACK HENRY & ASSOCIATES INC -4,000 173.61 -694,440.00 -1.43% S
PLD 74340W103 PROLOGIS INC -6,000 113.79 -682,740.00 -1.41% S
INVH 46187W107 INVITATION HOMES INC -20,000 33.58 -671,600.00 -1.39% S
WPC 92936U109 WP CAREY INC -12,000 55.87 -670,440.00 -1.38% S
LEN 526057104 LENNAR CORP-A -4,000 164.99 -659,960.00 -1.36% S
HOG 412822108 HARLEY-DAVIDSON INC -20,000 32.86 -657,200.00 -1.36% S
ALB 012653101 ALBEMARLE CORP -6,500 101.10 -657,150.00 -1.36% S
REXR 76169C100 REXFORD INDUSTRIAL REALTY IN -16,000 40.81 -652,960.00 -1.35% S
PHR 71944F106 PHREESIA INC -30,000 21.13 -633,900.00 -1.31% S
OLED 91347P105 UNIVERSAL DISPLAY CORP -4,000 156.75 -627,000.00 -1.29% S
CRUS 172755100 CIRRUS LOGIC INC -6,000 103.96 -623,760.00 -1.29% S
ZS 98980G102 ZSCALER INC -3,000 205.61 -616,830.00 -1.27% S
XRX 98421M106 XEROX HOLDINGS CORP -70,000 8.71 -609,700.00 -1.26% S
EPAM 29414B104 EPAM SYSTEMS INC -2,500 240.37 -600,925.00 -1.24% S
OZK 06417N103 BANK OZK -12,500 47.35 -591,875.00 -1.22% S
MAR 571903202 MARRIOTT INTERNATIONAL -CL A -2,000 292.48 -584,960.00 -1.21% S
MCHP 595017104 MICROCHIP TECHNOLOGY INC -10,000 58.25 -582,500.00 -1.20% S
WGO 974637100 WINNEBAGO INDUSTRIES -10,000 57.21 -572,100.00 -1.18% S
FOR 346232101 FORESTAR GROUP INC -20,000 28.33 -566,600.00 -1.17% S
CRI 146229109 CARTER'S INC -10,000 55.86 -558,600.00 -1.15% S
INFA 45674M101 INFORMATICA INC - CLASS A -20,000 27.10 -542,000.00 -1.12% S
DAR 237266101 DARLING INGREDIENTS INC -15,000 35.57 -533,550.00 -1.10% S
AMKR 031652100 AMKOR TECHNOLOGY INC -20,000 26.01 -520,200.00 -1.07% S
HLIT 413160102 HARMONIC INC -40,000 12.83 -513,200.00 -1.06% S
MCFT 57637H103 MASTERCRAFT BOAT HOLDINGS IN -20,000 20.48 -409,600.00 -0.85% S
X9USDFITY FIDELITY INSTL GOVT 657 C 10,912,879.07 1.00 10,912,879.07 22.53% MM
CASH 17,194,769.36 100.00 17,194,769.36 35.51% CA
X9USDBLFD BLACKROCK FEDERAL FD 30 INSTL 60,346,710.45 1.00 60,346,710.45 124.61% MM
Holdings and allocations are subject to risks and to change. 

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FUND

Fees & Expenses

Management Fee 1.50%
Total Annual Operating Expenses 3.68%

*Total Annual Operating Expenses in this fee table may not correlate to the expense ratios in the Fund’s financial highlights. For more information, please read the full prospectus.

Last Ten

Fund Distributions

  • Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.

 

  • There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. The Fund may invest in (or short) ETFs, ETNs and ETPs. In addition to the risks associated with such vehicles, investments, or reference assets in the case of ETNs, lack of liquidity can result in its value being more volatile than the underlying portfolio investment. Other Fund risks include market risk, equity risk, short sales and leverage risk, large cap risk, early closing risk, liquidity risk and trading risk. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund. See prospectus for specific risks and details.  
  •  
  • Definitions  
  •  
  • Short: A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price.