(HDGE) RANGER EQUITY BEAR ETF

HDGE

Overview

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.

Symbol Exchange Inception Date CUSIP Indicative Value Options
HDGE NYSE Arca 1/26/2011 00768Y 412 HDGE.IV Available
<strong>Why Invest in HDGE?</strong>
  • 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.
<strong>Key Attributes</strong>
  1. 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.
  2. 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.
  3. 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.
  4. 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.
<strong>About the Portfolio Managers</strong>

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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Fund

Price History

As of 7/30/2021

NAV $24.18 Closing Price $24.20
Change $0.17 Close Change $0.21
Shares Outstanding 2,222,500 Volume 18741
4PM Bid/Offer Midpoint $24.17 Premium Discount $-0.01
Assets Under Management $52,811,633.31 30-Day Median bid-ask Spread -
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

Performance

As of 6/30/2021

  NAV Market Price Return S&P 500 Index
1 Month -4.54 -4.56 2.33
3 Months -9.31 -9.20 8.55
YTD -24.25 -23.84 15.25
1 Year -52.62 -52.58 40.79
3 Years -33.39 -33.34 18.67
5 Years -26.31 -26.31 17.65
10 Years -20.43 -20.43 14.84 
Since Inception (1/26/2011, Annualized) -20.44 -20.44 14.49

As of 6/30/2021

  NAV Market Price Return S&P 500 Index
1 Month -4.54 -4.56 2.33
3 Months -9.31 -9.20 8.55
YTD -24.25 -23.84 15.25
1 Year -52.62 -52.58 40.79
3 Years -33.39 -33.34 18.67
5 Years -26.31 -26.31 17.65
Since Inception (1/26/2011, Annualized) -20.44 -20.44 14.49

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.

Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
07/30/2021 HDGE PCG 69331C108 P G & E CORP (300,000.00) 8.79 (2,637,000.00) -4.91% S
TTWO 874054109 TAKE-TWO INTERACTIVE SOFTWRE (13,000.00) 173.42 (2,254,460.00) -4.20% S
APPF 03783C100 APPFOLIO INC - A (12,500.00) 141.60 (1,770,000.00) -3.29% S
BBY 086516101 BEST BUY CO INC (15,000.00) 112.35 (1,685,250.00) -3.14% S
NOV 62955J103 NOV INC (100,000.00) 13.81 (1,381,000.00) -2.57% S
DAN 235825205 DANA INC (55,000.00) 24.16 (1,328,800.00) -2.47% S
ROAD 21044C107 CONSTRUCTION PARTNERS INC-A (37,500.00) 33.58 (1,259,250.00) -2.34% S
NFE 644393100 NEW FORTRESS ENERGY INC (40,000.00) 30.31 (1,212,400.00) -2.26% S
UEIC 913483103 UNIVERSAL ELECTRONICS INC (24,000.00) 46.74 (1,121,760.00) -2.09% S
VZ 92343V104 VERIZON COMMUNICATIONS INC (20,000.00) 55.78 (1,115,600.00) -2.08% S
WHR 963320106 WHIRLPOOL CORP (5,000.00) 221.54 (1,107,700.00) -2.06% S
SNA 833034101 SNAP-ON INC (5,000.00) 217.98 (1,089,900.00) -2.03% S
BFAM 109194100 BRIGHT HORIZONS FAMILY SOLUT (7,000.00) 149.50 (1,046,500.00) -1.95% S
PVH 693656100 PVH CORP (10,000.00) 104.62 (1,046,200.00) -1.95% S
FCFS 33767D105 FIRSTCASH INC (12,832.00) 79.20 (1,016,294.40) -1.89% S
C 172967424 CITIGROUP INC (15,000.00) 67.62 (1,014,300.00) -1.89% S
CS 225401108 CREDIT SUISSE GROUP-SPON ADR (100,000.00) 10.05 (1,005,000.00) -1.87% FS
MRCY 589378108 MERCURY SYSTEMS INC (15,000.00) 66.00 (990,000.00) -1.84% S
MTOR 59001K100 MERITOR INC (40,000.00) 24.33 (973,200.00) -1.81% S
FSLY 31188V100 FASTLY INC - CLASS A (20,000.00) 48.07 (961,400.00) -1.79% S
INSP 457730109 INSPIRE MEDICAL SYSTEMS INC (5,000.00) 183.16 (915,800.00) -1.70% S
SABR 78573M104 SABRE CORP (75,000.00) 11.79 (884,250.00) -1.65% S
FROG M6191J100 JFROG LTD (20,000.00) 43.82 (876,400.00) -1.63% FS
AMCR G0250X107 AMCOR PLC (75,000.00) 11.56 (867,000.00) -1.61% FS
TPX 88023U101 TEMPUR SEALY INTERNATIONAL I (20,000.00) 43.27 (865,400.00) -1.61% S
SMP 853666105 STANDARD MOTOR PRODS (20,000.00) 41.76 (835,200.00) -1.55% S
SDGR 80810D103 SCHRODINGER INC (12,000.00) 67.67 (812,040.00) -1.51% S
ZTO 98980A105 ZTO EXPRESS CAYMAN INC-ADR (30,000.00) 27.06 (811,800.00) -1.51% FS
AYX 02156B103 ALTERYX INC - CLASS A (10,000.00) 77.40 (774,000.00) -1.44% S
EGHT 282914100 8X8 INC (30,000.00) 25.56 (766,800.00) -1.43% S
FTCH 30744W107 FARFETCH LTD-CLASS A (15,000.00) 50.12 (751,800.00) -1.40% FS
ARMK 03852U106 ARAMARK (20,856.00) 35.13 (732,671.28) -1.36% S
WH 98311A105 WYNDHAM HOTELS & RESORTS INC (10,000.00) 72.06 (720,600.00) -1.34% S
PING 72341T103 PING IDENTITY HOLDING CORP (30,000.00) 22.07 (662,100.00) -1.23% S
FUN 150185106 CEDAR FAIR LP (15,000.00) 42.00 (630,000.00) -1.17% S
REGI 75972A301 RENEWABLE ENERGY GROUP INC (10,000.00) 61.25 (612,500.00) -1.14% S
KC 49639K101 KINGSOFT CLOUD HOLDINGS-ADR (20,000.00) 29.00 (580,000.00) -1.08% FS
SPLK 848637104 SPLUNK INC (4,000.00) 141.98 (567,920.00) -1.06% S
AFRM 00827B106 AFFIRM HOLDINGS INC (10,000.00) 56.32 (563,200.00) -1.05% S
HBM 443628102 HUDBAY MINERALS INC (75,000.00) 7.16 (537,000.00) -1.00% FS
AKTS 00973N102 AKOUSTIS TECHNOLOGIES INC (50,000.00) 9.68 (484,000.00) -0.90% S
TEO 879273209 TELECOM ARGENTINA SA-SP ADR (94,030.00) 5.02 (472,030.60) -0.88% FS
LPX 546347105 LOUISIANA-PACIFIC CORP (7,500.00) 55.44 (415,800.00) -0.77% S
GRUB 48214T305 JUST EAT TAKEAWAY-SPONS ADR (5,316.00) 17.61 (93,614.76) -0.17% FS
AEVA 00835Q103 AEVA TECHNOLOGIES INC (4,246.00) 8.76 (37,194.96) -0.07% S
HOLD 00768Y651 ADVISORSHARES SAGE CORE RESE 200,000.00 98.64 19,728,000.00 36.72% MF
CASH (49,055,449.33) 100.00 (49,055,449.33) -91.30% CA
X9USDFITY FIDELITY INSTL GOVT 657 C 3,239,476.09 1.00 3,239,476.09 6.03% MM
X9USDBLFD BLACKROCK FEDERAL FD 30 INSTL 122,104,121.77 1.00 122,104,121.77 227.25% MM

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.

FUND

Characteristics

As of 6/30/2021

HDGE Performance During Market Drawdowns

HDGE Market Cap

HDGE Sector Allocation

FUND

Fees & Expenses

Management Fee 1.50%
Short Interest Expense 1.42%
Other Expense 0.18%
Acquired Fund Fees 0.26%
Expense Ratio 3.36%

 

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.