When Newsletter Writers Try to Trade, 1

Member Mark M. wrote this morning, “You are doing a great job and the site has gotten even better. Those calls in September and then again in March were pure genius. I don’t think you are getting enough recognition for those.”
I answered by saying it probably has something to do with not having gray hair and/or a beard.
27-hagCase in point: Barry Ritholtz [VIDEO] and Dennis Gartman [VIDEO] were both on Fast Money yesterday. That got me thinking.
Not long ago, I attended the roadshow for the Horizons AlphaPro Gartman Fund. The chicken was quite nice with demi-glace, on a bed of wild rice and broccoli rabe. The dessert would have to wait a few months because as we all know, the proof of the pudding is in the eating.
Horizons AlphaPro Gartman Fund
This is what it looks like so far. Yellow is Gartman. Pink is the S&P 500 Index.
Managed S&P/TSX 60 ETF
AlphaPro also offers the Managed S&P/TSX 60 ETF. Ron Meisels, the Canadian guru of Phases & Cycles Inc. is the manager.
Yellow is Meisels. Pink is the actual S&P/TSX 60 Index.
The RevenueShares Navellier Overall A-100
Then there is Louis Navallier, billed as the greatest stock picker. How is his ETF doing so far? Yellow is Navellier. Pink is the Russell 2000 Index.
Seems to me Barry is the smartest one, by not having a public fund. He’s way better off with, “It depends upon what the market offers us; If we remain range-bound, it will be difficult to put up great numbers without a lot of leverage or a lot of risk (or both), and we don’t do that. We do particularly well, however, in major dislocations or strong rallies. What we want is irrelevant; Its what we can reasonably do while still managing risk, and not overleveraging. Our goal is to outperform the S&P500 with less risk, and in the event the SPX is negative, still have positive expectancy (i.e., be up when the indices are down).”


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  1. Wow! Can one still get paid well for that stuff?

    • You should see the fee structure for the AlphaPro funds. While sophisticated investors now refuse to pay 2%/20% to hedge funds, ETFs are socking it to retail (without the “sub-advisor” even being licensed in Canada):

      The Manager will be paid (i) an annual management fee of 0.75% of the NAV of each class of Units, accrued and calculated daily on each Valuation Date (as defined herein) and paid monthly in arrears, together with applicable taxes, plus (ii) an amount equal to the Service Fee (described below) to be paid by the Manager to dealers in respect of Class A Units, plus applicable taxes. Each of the Investment Manager and the Sub-Advisor will be compensated for their services by the Manager or an affiliate without any further cost to the Fund.
      The Fund will pay to the Manager a performance fee (the “Performance Fee”), if any, equal to 20% of the amount by which the performance of the Fund at any date on which the fee is payable (i) exceeds the High Water Mark (defined below) and (ii) outperforms the one (1) year Government of Canada Treasury Bill rate.

  2. if one was actively trading etfs, where would you find these fees?

    • You just look in the prospectus. There is always a section near the front of the document about management fees.

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