Goldman Sachs was already compiling a list of the stocks most responsible for the hedge fund industry’s more or less dismal performance over the past couple of years. But why go and make Hedge Fund Trend Monitor readers go out and actually buy all 50 stocks—yay, Valeant!—when Goldman could just put them all in an ETF, call it an innovation and collect some fees on it.
The research report—and the ETF—tracks the 50 companies that matter most to fundamentally driven hedge funds as found in their 13F filings…..
The ETF would mark the first time a Wall Street bank uses its own research report as the basis for an ETF….
The recent dip downward in the Goldman index is largely due to the health care stocks in the portfolio, namely Valeant Pharmaceuticals, which is down 64 percent in the past six months. However, that company, along with 13 others, was booted in the last rebalance as the latest 13F filings showed hedge funds shifting from laggards to leaders. This translated into a 17 percent increase in tech exposure for the index. The new ETF will mimic the index and rebalance twice a year.
So not only will you get to lose money alongside hedge funds, you’ll also get to keep losing money on things they’ve long since given up on. Who’s in?