is co-manager of the AdvisorShares Active Bear ETF
], which according to Morningstar is the world's only actively managed short-only ETF. The Wall Street Journal
's Jonathan Cheng profiled
DelVecchio and his $280 million fund, which has seen double-digit gains in the last two months by betting against plunging stocks like Green Mountain Coffee Roasters, clothes maker Fossil Inc., and the tech company Juniper Networks.
DelVecchio, who works out of Dallas, and his partner Brad Lamensdorf
, who's based in Connecticut, actively manage their fund and take only short positions, without using leverage or buying derivatives. Mr. DelVecchio says he hopes that investors will embrace his fund for its transparency -- all its positions can be tracked day to day -- and liquidity, both of which can be tall orders for hedge funds.
In the last two months, the ETF has gained 19 percent, while for the year it's up 3.9 percent, compared with a 5.4 percent rise in the S&P 500, as the WSJ reports. Along with its successful shorts of Fossil, Green Mountain, and Juniper, the fund has made some bets that haven't paid off, taking short positions against Amazon, Under Armour, and Hanesbrands.
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