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 Indicative Value Options
HDGE NYSE Arca 1/26/2011 00768Y 412 HDGE.IV Available
<strong>About The ETF</strong>
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.
<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>
  • 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.
<strong>About the Portfolio Manager</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

Fund Data

6/13/2024
NAV $20.91
Change $0.26
Shares Outstanding 3,212,500
Assets Under Management $67,161,793.54

 

 

 

 

Market Data

6/13/2024
Closing Price $20.89
Close Change $0.22
Volume 54,081

Regulatory Data

6/13/2024
Premium Discount $0.0000
30-Day Median bid-ask Spread 0.100000
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 5/31/2024

HDGE Performance During Market Drawdowns

HDGE Market Cap

HDGE Sector Allocation

FUND

Performance

As of 5/31/2024

  NAV Market Price Return S&P 500 Index
1 Month -3.64 -3.47 4.96
3 Months 3.69 3.51 3.91
YTD 7.62 7.62 11.30
1 Year -11.23 -11.22 28.19
3 Years -2.13 -2.13 9.57
5 Years -20.07 -20.07 15.80
10 Years -15.64 -15.64 12.69 
Since Inception (1/26/2011, Annualized) -16.47 -16.47 13.26

As of 3/31/2024

  NAV Market Price Return S&P 500 Index
1 Month -1.25 -1.2 3.22
3 Months 2.5 2.71 10.56
YTD 2.5 2.71 10.56
1 Year -15.45 -15.5 29.88
3 Years -5.34 -5.22 11.49
5 Years -20.63 -20.58 15.05
10 Years -16.28 -16.26 12.96
Since Inception (1/26/2011, Annualized) -16.97 -16.96 13.38

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 ID Security Description Shares Share Price Market Value Portfolio Weight Asset Group
06/13/2024 HDGE DEO 25243Q205 DIAGEO PLC-SPONSORED ADR -11,000 131.37 -1,445,070.00 -2.15% FS
KMX 143130102 CARMAX INC -20,000 70.29 -1,405,800.00 -2.09% S
EGP 277276101 EASTGROUP PROPERTIES INC -8,000 166.11 -1,328,880.00 -1.98% S
HUM 444859102 HUMANA INC -3,500 358.10 -1,253,350.00 -1.87% S
CFR 229899109 CULLEN/FROST BANKERS INC -13,000 95.81 -1,245,530.00 -1.85% S
GLBE M5216V106 GLOBAL-E ONLINE LTD -40,000 31.08 -1,243,200.00 -1.85% FS
PHR 71944F106 PHREESIA INC -63,000 19.72 -1,242,360.00 -1.85% S
RIVN 76954A103 RIVIAN AUTOMOTIVE INC-A -110,000 11.11 -1,222,100.00 -1.82% S
DASH 25809K105 DOORDASH INC - A -10,500 113.77 -1,194,585.00 -1.78% S
MRCY 589378108 MERCURY SYSTEMS INC -40,000 28.82 -1,152,800.00 -1.72% S
EQIX 29444U700 EQUINIX INC -1,500 766.60 -1,149,900.00 -1.71% S
SNDR 80689H102 SCHNEIDER NATIONAL INC-CL B -52,000 22.04 -1,146,080.00 -1.71% S
ON 682189105 ON SEMICONDUCTOR -15,000 75.04 -1,125,600.00 -1.68% S
VEEV 922475108 VEEVA SYSTEMS INC-CLASS A -6,000 185.77 -1,114,620.00 -1.66% S
HELE G4388N106 HELEN OF TROY LTD -11,000 100.03 -1,100,330.00 -1.64% FS
PUK 74435K204 PRUDENTIAL PLC-ADR -60,000 18.19 -1,091,400.00 -1.62% FS
LUV 844741108 SOUTHWEST AIRLINES CO -38,000 28.41 -1,079,580.00 -1.61% S
SMAR 83200N103 SMARTSHEET INC-CLASS A -25,000 41.93 -1,048,250.00 -1.56% S
REG 758849103 REGENCY CENTERS CORP -17,000 61.62 -1,047,540.00 -1.56% S
QSR 76131D103 RESTAURANT BRANDS INTERN -15,000 69.34 -1,040,100.00 -1.55% FS
THS 89469A104 TREEHOUSE FOODS INC -29,000 35.33 -1,024,570.00 -1.53% S
MBLY 60741F104 MOBILEYE GLOBAL INC-A -35,000 29.09 -1,018,150.00 -1.52% S
O 756109104 REALTY INCOME CORP -19,000 53.22 -1,011,180.00 -1.51% S
CAR 053774105 AVIS BUDGET GROUP INC -9,000 108.21 -973,890.00 -1.45% S
MRTN 573075108 MARTEN TRANSPORT LTD -55,000 17.63 -969,650.00 -1.44% S
FR 32054K103 FIRST INDUSTRIAL REALTY TR -20,000 47.52 -950,400.00 -1.41% S
CACC 225310101 CREDIT ACCEPTANCE CORP -2,000 475.06 -950,120.00 -1.41% S
LGIH 50187T106 LGI HOMES INC -10,000 94.39 -943,900.00 -1.41% S
RF 7591EP100 REGIONS FINANCIAL CORP -50,000 18.75 -937,500.00 -1.40% S
ROIC 76131N101 RETAIL OPPORTUNITY INVESTMEN -75,000 12.49 -936,750.00 -1.39% S
KLIC 501242101 KULICKE & SOFFA INDUSTRIES -20,000 46.11 -922,200.00 -1.37% S
VRSN 92343E102 VERISIGN INC -5,000 179.70 -898,500.00 -1.34% S
SNV 87161C501 SYNOVUS FINANCIAL CORP -24,128 37.00 -892,736.00 -1.33% S
HHH 44267T102 HOWARD HUGHES HOLDINGS INC -13,000 67.90 -882,700.00 -1.31% S
TRNO 88146M101 TERRENO REALTY CORP -15,000 58.37 -875,550.00 -1.30% S
UCBI 90984P303 UNITED COMMUNITY BANKS/GA -35,000 24.83 -869,050.00 -1.29% S
IPGP 44980X109 IPG PHOTONICS CORP -10,000 86.84 -868,400.00 -1.29% S
TDY 879360105 TELEDYNE TECHNOLOGIES INC -2,200 394.23 -867,306.00 -1.29% S
GSHD 38267D109 GOOSEHEAD INSURANCE INC -A -15,000 57.75 -866,250.00 -1.29% S
ALB 012653101 ALBEMARLE CORP -8,000 108.23 -865,840.00 -1.29% S
LW 513272104 LAMB WESTON HOLDINGS INC -10,000 86.17 -861,700.00 -1.28% S
WOLF 977852102 WOLFSPEED INC -30,000 28.66 -859,800.00 -1.28% S
SPT 85209W109 SPROUT SOCIAL INC - CLASS A -25,000 34.21 -855,250.00 -1.27% S
SOFI 83406F102 SOFI TECHNOLOGIES INC -125,000 6.80 -850,000.00 -1.27% S
ACN G1151C101 ACCENTURE PLC-CL A -3,000 282.32 -846,960.00 -1.26% FS
EXTR 30226D106 EXTREME NETWORKS INC -70,000 12.05 -843,500.00 -1.26% S
WPC 92936U109 WP CAREY INC -15,000 55.97 -839,550.00 -1.25% S
PD 69553P100 PAGERDUTY INC -40,000 20.98 -839,200.00 -1.25% S
MGRC 580589109 MCGRATH RENTCORP -8,000 104.87 -838,960.00 -1.25% S
GT 382550101 GOODYEAR TIRE & RUBBER CO -70,000 11.79 -825,300.00 -1.23% S
HGV 43283X105 HILTON GRAND VACATIONS INC -20,000 41.06 -821,200.00 -1.22% S
ROKU 77543R102 ROKU INC -15,000 54.20 -813,000.00 -1.21% S
SNA 833034101 SNAP-ON INC -3,000 268.83 -806,490.00 -1.20% S
NOV 62955J103 NOV INC -45,000 17.90 -805,500.00 -1.20% S
WK 98139A105 WORKIVA INC -10,744 74.17 -796,882.48 -1.19% S
ETSY 29786A106 ETSY INC -13,000 60.14 -781,820.00 -1.16% S
NBR G6359F137 NABORS INDUSTRIES LTD -12,000 65.14 -781,680.00 -1.16% FS
TEAM 049468101 ATLASSIAN CORP-CL A -5,000 156.02 -780,100.00 -1.16% S
VICR 925815102 VICOR CORP -22,000 35.21 -774,620.00 -1.15% S
NAPA 26414D106 DUCKHORN PORTFOLIO INC/THE -100,000 7.58 -758,000.00 -1.13% S
BC 117043109 BRUNSWICK CORP -10,000 75.16 -751,600.00 -1.12% S
KIM 49446R109 KIMCO REALTY CORP -40,000 18.72 -748,800.00 -1.11% S
ALGM 01749D105 ALLEGRO MICROSYSTEMS INC -25,000 29.12 -728,000.00 -1.08% S
ALTM G0508H110 ARCADIUM LITHIUM PLC -200,000 3.62 -724,000.00 -1.08% FS
XRX 98421M106 XEROX HOLDINGS CORP -50,000 13.78 -689,000.00 -1.03% S
VLY 919794107 VALLEY NATIONAL BANCORP -100,000 6.69 -669,000.00 -1.00% S
ATGE 00737L103 ADTALEM GLOBAL EDUCATION INC -10,000 64.11 -641,100.00 -0.95% S
OMCL 68213N109 OMNICELL INC -20,000 27.23 -544,600.00 -0.81% S
LULU 550021109 LULULEMON ATHLETICA INC -1,500 307.49 -461,235.00 -0.69% S
CLBK 197641103 COLUMBIA FINANCIAL INC -18,000 14.13 -254,340.00 -0.38% S
X9USDFITY FIDELITY INSTL GOVT 657 C 18,637,768.38 1.00 18,637,768.38 27.75% MM
CASH 54,473,990.34 100.00 54,473,990.34 81.09% CA
X9USDBLFD BLACKROCK FEDERAL FD 30 INSTL 58,856,279.54 1.00 58,856,279.54 87.62% 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.

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FUND

Fees & Expenses

Management Fee 1.50%
Other Expenses 1.89%
Acquired Fund Fees and Expenses* 0.06%
Total Annual Operating Expenses 3.45%

*Total Annual Operating Expenses and Total Annual Operating Expenses After Waiver/Reimbursement 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.