(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 00768Y883 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.

Fund

Price History

As of 9/17/2019

NAV $6.34 Closing Price $6.35
Change $0.09 Close Change $0.11
Shares Outstanding 26,725,000.00 Volume 393,670
4PM Bid/Offer Midpoint $6.34 Premium Discount $0.00
Assets Under Management $169,513,313.54

Premium/Discount Historical Data | NAV 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. 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

Performance

As of 8/31/2019

  NAV Market Price Return S&P 500 Index
1 Month 8.72 8.88 -1.58
3 Months 0.51 0.72 6.87
YTD -17.22 -16.98 18.34
1 Year -5.20 -4.77 2.92
3 Years -9.80 -9.75 12.70
5 Years -9.33 -9.29 10.11
Since Inception (1/26/2011, Annualized) -13.80 -13.78 12.27

As of 6/30/2019

  NAV Market Price Return S&P 500 Index
1 Month -8.01 -7.93 7.05
3 Months -6.75 -6.58 4.30
YTD -24.24 -24.11 18.54
1 Year -18.16 -17.87 10.42
3 Years -15.56 -15.55 14.19
5 Years -11.53 -11.53 10.71
Since Inception (1/26/2011, Annualized) -14.96 -14.95 12.55

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.

Top Ten

Holdings

As of 9/17/2019

Date Account Symbol Stock Ticker CUSIP/Number Security Shares Price Market Value Weight % Asset Group
09/17/2019 HDGE SNA 833034101 SNAP-ON INC (30,000.00) 157.84 (4,735,200.00) -2.79% S 1
HDGE CIT 125581801 CIT GROUP INC (100,000.00) 46.41 (4,641,000.00) -2.74% S 1
HDGE BC 117043109 BRUNSWICK CORP (70,000.00) 53.98 (3,778,600.00) -2.23% S 1
HDGE HOG 412822108 HARLEY-DAVIDSON INC (104,000.00) 34.92 (3,631,680.00) -2.14% S 1
HDGE CWK G2717B108 CUSHMAN & WAKEFIELD PLC (190,000.00) 18.56 (3,526,400.00) -2.08% FS 1
HDGE RUSHA 781846209 RUSH ENTERPRISES INC (85,000.00) 40.69 (3,458,650.00) -2.04% S 1
HDGE THO 885160101 THOR INDUSTRIES INC (62,500.00) 53.46 (3,341,250.00) -1.97% S 1
HDGE CPRI G1890L107 CAPRI HOLDINGS LTD (105,000.00) 31.69 (3,327,450.00) -1.96% FS 1
HDGE AYI 00508Y102 ACUITY BRANDS INC (24,500.00) 135.18 (3,311,910.00) -1.95% S 1
HDGE AAXN 05464C101 AXON ENTERPRISE INC (50,000.00) 66.15 (3,307,500.00) -1.95% S 1
HDGE RF 7591EP100 REGIONS FINANCIAL CORP (200,000.00) 16.26 (3,252,000.00) -1.92% S 1
HDGE LC 52603A208 LENDINGCLUB CORP (218,000.00) 14.90 (3,248,200.00) -1.92% S 1
HDGE PTC 69370C100 PTC INC (47,500.00) 67.46 (3,204,350.00) -1.89% S 1
HDGE FNB 302520101 FNB CORP (275,000.00) 11.43 (3,143,250.00) -1.85% S 1
HDGE ADM 039483102 ARCHER-DANIELS-MIDLAND CO (75,000.00) 41.79 (3,134,250.00) -1.85% S 1
HDGE ENR 29272W109 ENERGIZER HOLDINGS INC (72,000.00) 43.39 (3,124,080.00) -1.84% S 1
HDGE SPB 84790A105 SPECTRUM BRANDS HOLDINGS INC (57,500.00) 53.56 (3,079,700.00) -1.82% S 1
HDGE AA 013872106 ALCOA CORP (137,500.00) 22.03 (3,029,125.00) -1.79% S 1
HDGE NFLX 64110L106 NETFLIX INC (10,000.00) 298.60 (2,986,000.00) -1.76% S 1
HDGE GT 382550101 GOODYEAR TIRE & RUBBER CO (220,000.00) 13.53 (2,976,600.00) -1.76% S 1
HDGE PLUS 294268107 EPLUS INC (37,500.00) 79.33 (2,974,875.00) -1.75% S 1
HDGE UPWK 91688F104 UPWORK INC (202,021.00) 14.62 (2,953,547.02) -1.74% S 1
HDGE TRN 896522109 TRINITY INDUSTRIES INC (145,000.00) 20.00 (2,900,000.00) -1.71% S 1
HDGE TRGP 87612G101 TARGA RESOURCES CORP (70,000.00) 41.32 (2,892,400.00) -1.71% S 1
HDGE SLM 78442P106 SLM CORP (300,000.00) 9.38 (2,814,000.00) -1.66% S 1
HDGE TIF 886547108 TIFFANY & CO (29,500.00) 95.26 (2,810,170.00) -1.66% S 1
HDGE SIVB 78486Q101 SVB FINANCIAL GROUP (13,000.00) 213.43 (2,774,590.00) -1.64% S 1
HDGE VALE 91912E105 VALE SA-SP ADR (232,565.00) 11.93 (2,774,500.45) -1.64% FS 1
HDGE KMT 489170100 KENNAMETAL INC (88,000.00) 31.28 (2,752,640.00) -1.62% S 1
HDGE ZUO 98983V106 ZUORA INC - CLASS A (175,000.00) 15.70 (2,747,500.00) -1.62% S 1
HDGE AVNS 05350V106 AVANOS MEDICAL INC (73,000.00) 37.42 (2,731,660.00) -1.61% S 1
HDGE CAJ 138006309 CANON INC-SPONS ADR (100,000.00) 27.22 (2,722,000.00) -1.61% FS 1
HDGE BHGE 05722G100 BAKER HUGHES A GE CO (115,000.00) 23.38 (2,688,700.00) -1.59% S 1
HDGE CBT 127055101 CABOT CORP (57,500.00) 45.94 (2,641,550.00) -1.56% S 1
HDGE PBH 74112D101 PRESTIGE CONSUMER HEALTHCARE (77,000.00) 34.27 (2,638,790.00) -1.56% S 1
HDGE WWW 978097103 WOLVERINE WORLD WIDE INC (90,000.00) 29.03 (2,612,700.00) -1.54% S 1
HDGE WPX 98212B103 WPX ENERGY INC (225,000.00) 11.48 (2,583,000.00) -1.52% S 1
HDGE TLND 874224207 TALEND SA - ADR (65,000.00) 39.53 (2,569,450.00) -1.52% FS 1
HDGE TEX 880779103 TEREX CORP (90,000.00) 27.83 (2,504,700.00) -1.48% S 1
HDGE WB 948596101 WEIBO CORP-SPON ADR (50,000.00) 49.77 (2,488,500.00) -1.47% FS 1
HDGE WAB 929740108 WABTEC CORP (32,000.00) 75.73 (2,423,360.00) -1.43% S 1
HDGE FIZZ 635017106 NATIONAL BEVERAGE CORP (52,000.00) 46.30 (2,407,600.00) -1.42% S 1
HDGE FRC 33616C100 FIRST REPUBLIC BANK/CA (25,000.00) 95.51 (2,387,750.00) -1.41% S 1
HDGE PRIM 74164F103 PRIMORIS SERVICES CORP (110,000.00) 20.96 (2,305,600.00) -1.36% S 1
HDGE WLK 960413102 WESTLAKE CHEMICAL CORP (35,000.00) 65.71 (2,299,850.00) -1.36% S 1
HDGE AERI 00771V108 AERIE PHARMACEUTICALS INC (100,000.00) 22.79 (2,279,000.00) -1.34% S 1
HDGE X 912909108 UNITED STATES STEEL CORP (175,000.00) 12.96 (2,268,000.00) -1.34% S 1
HDGE MOS 61945C103 MOSAIC CO/THE (100,000.00) 21.81 (2,181,000.00) -1.29% S 1
HDGE HCM 44842L103 HUTCHISON CHINA MEDITECH-ADR (100,000.00) 21.11 (2,111,000.00) -1.25% FS 1
HDGE NAV 6.39E+112 NAVISTAR INTERNATIONAL CORP -70,000.00 29.19 -2,043,300.00 -1.21% S 1
HDGE FPH 33833Q106 FIVE POINT HOLDINGS LLC-CL A -275,000.00 7.43 -2,043,250.00 -1.21% S 1
HDGE IFF 459506101 INTL FLAVORS & FRAGRANCES -15,000.00 122.23 -1,833,450.00 -1.08% S 1
HDGE PDCO 703395103 PATTERSON COS INC -100,000.00 18 -1,800,000.00 -1.06% S 1
HDGE CC 163851108 CHEMOURS CO/THE -100,000.00 16.62 -1,662,000.00 -0.98% S 1
HDGE CMA 200340107 COMERICA INC -25,000.00 65.48 -1,637,000.00 -0.97% S 1
HDGE AVYA 05351X101 AVAYA HOLDINGS CORP -150,000.00 10.63 -1,594,500.00 -0.94% S 1
HDGE FITB 316773100 FIFTH THIRD BANCORP -55,000.00 28.18 -1,549,900.00 -0.91% S 1
HDGE SAN 05964H105 BANCO SANTANDER SA-SPON ADR -300,000.00 4 -1,200,000.00 -0.71% FS 1
HDGE I L5140P101 INTELSAT SA -50,000.00 23.34 -1,167,000.00 -0.69% FS 1
HDGE WH 98311A105 WYNDHAM HOTELS & RESORTS INC -20,000.00 53.01 -1,060,200.00 -0.63% S 1
HDGE CXO 20605P101 CONCHO RESOURCES INC -12,500.00 74.38 -929,750.00 -0.55% S 1
HDGE HOLD 00768Y651 ADVISORSHARES SAGE CORE RESE 900,000.00 99.81 89,829,000.00 52.99% MF 1
HDGE X9USDMOR3 MORGAN STANLEY GOVT INSTL 8302 500,000.00 1 500,000.00 0.29% MM 0
HDGE X9USDFITY FIDELITY INSTL GOVT 657 C 11,200,552.20 1 11,200,552.20 6.61% MM 0
HDGE X9USDBLFD BLACKROCK FEDERAL FD 30 INSTL 51,562,396.59 1 51,562,396.59 30.42% MM 0
HDGE CASH 178,413,246.92 100 178,413,246.92 105.25% CA 0

FUND

Characteristics

As of 08/31/2019

HDGE Market Cap

HDGE Sector Allocation

FUND

Fees & Expenses

Management Fee 1.50%
Short Interest Expense 0.84%
Other Expense 0.18%
Acquired Fund Fees 0.20%
Net Expense Ratio 2.72%

*The Advisor has contractually agreed to keep net expenses from exceeding 0.95% of the Fund’s average daily net assets for at least one year from the date of the prospectus and for successive one-year periods thereafter unless the agreement is terminated. This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Expenses.”

Last Ten

Fund Distributions

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) HDGE
12/27/2019 12/30/2019 - - - - -
12/27/2018 12/28/2018 12/31/2018 $0.00 $0.00 $0.00 $0.00 $0.0000
12/27/2017 12/28/2017 12/29/2017 $0.00 $0.00 $0.00 $0.00 $0.0000
12/23/2016 12/28/2016 12/30/2016 $0.00 $0.00 $0.00 $0.00 $0.0000
12/24/2015 12/29/2015 12/31/2015 $0.00 $0.00 $0.00 $0.00 $0.0000
12/24/2014 12/29/2014 12/31/2014 $0.00 $0.00 $0.00 $0.00 $0.0000
12/24/2013 12/27/2013 12/31/2013 $0.00 $0.00 $0.00 $0.00 $0.0000
12/24/2012 12/27/2012 12/31/2012 $0.00 $0.00 $0.00 $0.00 $0.0000
12/23/2011 12/28/2011 12/30/2011 $0.00 $0.00 $0.00 $0.00 $0.0000
  • 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.