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Thursday, March 24, 2016 Katz vs WisdomTree Bill Katz is throwing some serious shade on the only publicly-traded pure-play ETF shop.
Mister Market may have heard Katz's concerns. Yesterday WisdomTree's shares fell 4.56 percent to $11.52, even as the overall Nasdaq fell 1.1 percent. The stock is down 26.53 percent year-to-date. WisdomTree claims about $45 billion in AUM. At Wednesday's close, its market cap was $1.51 billion, so in industry terms WisdomTree is priced at 3.4 percent of its AUM. (To get to a more typical industry valuation of two percent of AUM, with its current market cap, WisdomTree would need to add another $30 billion in AUM.) Katz's concerns focus on two WisdomTree funds in particular, the WisdomTree Europe Hedged Equity Fund (HEDJ) and the WisdomTree Japan Hedged Equity Fund (DXJ). Combined, the two ETFs have about 55 percent of the firm's AUM; Katz worries that their peak popularity has passed and that competitors are nipping at their heels. Printed from: MFWire.com/story.asp?s=53702 Copyright 2016, InvestmentWires, Inc. All Rights Reserved |