Key Takeaways
- • iMGP DBi Hedge Strategy ETF (DBEH) reached its three-year anniversary on December 17, 2022, according to a Business Wire announcement from iM Global Partner (iMGP) and Dynamic Beta investments (DBi).
- • DBEH seeks to replicate the pre-fee returns of a proprietary universe of leading equity long/short hedge funds, and DBi says it has delivered approximately three quarters of the S&P 500's return with half the drawdowns since inception.
- • The sister product, iMGP DBi Managed Futures Strategy ETF (DBMF), launched May 8, 2019, and is described as the largest managed futures ETF in the industry at over $1 billion in assets.
- • iMGP CEO Jeffrey Seeley argued that ETF allocators remain underinvested in hedge fund strategies because most hedge strategies do not work well in the ETF structure, a gap the firm hopes DBMF and DBEH will address.
Summary
iM Global Partner (iMGP), a worldwide asset management network, and Dynamic Beta investments (DBi), a New York-based hedge fund replication specialist, announced that the iMGP DBi Hedge Strategy ETF (DBEH) reached its three-year anniversary on December 17, 2022. The fund is an equity long/short ETF that seeks to replicate the pre-fee returns of a proprietary universe of leading equity long/short hedge funds in order to deliver equity-like returns over time with less risk.
Andrew Beer, Co-Managing Member of DBi, said the firm set out in 2019 with iMGP to build best-in-class hedge fund ETF building blocks for advisors, and said DBEH demonstrates the potential to outperform a diversified pool of institutional-quality equity long/short hedge funds while retaining client-friendly ETF features. Co-Managing Member Mathias Mamou-Mani said that since inception DBEH has delivered approximately three quarters of the S&P 500's return with half the drawdowns, a risk-return profile he said can complement traditional asset exposures.
The announcement highlighted the sister product, iMGP DBi Managed Futures Strategy ETF (DBMF), which launched May 8, 2019, and which the release describes as the largest managed futures ETF in the industry at over $1 billion in assets. Both funds are advised by iM Global Partner and sub-advised by DBi, which has been a partner of iMGP since 2018. Jeffrey Seeley, CEO of iM Global Partner US, said ETF allocators remain underinvested in hedge fund strategies because most hedge strategies do not work well in the ETF structure, and that the firm hopes DBMF and DBEH will change that.
The release notes that iMGP represents around US$34 billion in assets under management as of end August 2022. The fund materials carry standard risk disclosures, including that the funds are non-diversified, may be highly leveraged, and that past performance does not guarantee future results. The release does not provide DBEH's absolute asset level or specific return figures beyond the relative performance cited by management.
Andrew Beer, Co-Managing Member of DBi, said the firm set out in 2019 with iMGP to build best-in-class hedge fund ETF building blocks for advisors, and said DBEH demonstrates the potential to outperform a diversified pool of institutional-quality equity long/short hedge funds while retaining client-friendly ETF features. Co-Managing Member Mathias Mamou-Mani said that since inception DBEH has delivered approximately three quarters of the S&P 500's return with half the drawdowns, a risk-return profile he said can complement traditional asset exposures.
The announcement highlighted the sister product, iMGP DBi Managed Futures Strategy ETF (DBMF), which launched May 8, 2019, and which the release describes as the largest managed futures ETF in the industry at over $1 billion in assets. Both funds are advised by iM Global Partner and sub-advised by DBi, which has been a partner of iMGP since 2018. Jeffrey Seeley, CEO of iM Global Partner US, said ETF allocators remain underinvested in hedge fund strategies because most hedge strategies do not work well in the ETF structure, and that the firm hopes DBMF and DBEH will change that.
The release notes that iMGP represents around US$34 billion in assets under management as of end August 2022. The fund materials carry standard risk disclosures, including that the funds are non-diversified, may be highly leveraged, and that past performance does not guarantee future results. The release does not provide DBEH's absolute asset level or specific return figures beyond the relative performance cited by management.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.