has trekked north of the border after collaborating with a Toronto-based firm. The Maryland-based fund firm has built a reputation in the United States by offering funds that allow investors to take the bearish or bullish bet on stock market sectors.
Now it will act as an advisor to a similar series of funds in Canada that are sponsored by BetaPro Management
. The firm is an affiliate of Jovian Capital, which manages C$9 billion and is led by former Altamira Investment Service partner Philip Armstrong.
BetaPro is launching a family of 10 funds, half of which will take a long bet on sector and half of which will bet the sectors decline. The funds will take the Horizon brand name, and five will take the Bull Plus Funds label while the remainder the Bear Plus Funds moniker. The indexes or sectors covered by the initial funds include S&P/TSX, NASDAQ-100, Canadian Bonds, U.S. Dollar and crude oil.
The BetaPro fund will also mimic ProFunds in courting active traders and market-timers, allowing them daily liquidity. Traders will be able to purchase the shares with either Canadian or U.S. Dollars.
"Essentially, investors in the Bull Plus Funds have the opportunity to leverage their gains when the equity markets, interest rates, the US dollar or crude oil prices are rising, while investors in the Bear Plus Funds have the power to protect against or to potentially profit from a decline in the same markets or asset classes," says Adam Felesky, president of BetaPro Management Inc. "In addition, investors in the Bull Plus Funds benefit from leveraged exposure which requires a lower capital outlay than they would normally commit for an equivalent market exposure."
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