•  
• Tweet
•  
•  
•        Print
•  
•        Email
•  
•         Track Keywords

MSUS seeks to provide investment results that exceed the total return performance of the broader U.S. equity market on a risk-adjusted basis. MSUS will attempt to achieve this objective by seeking to reduce net exposure to the U.S. equity market in order to minimize losses in market downdrafts and to enhance net exposure and returns during market rallies.

The statistical techniques employed look at the changing distribution of price movements in the S&P® 500 as described by the four moments of a distribution. The fund seeks to take advantage of statistical indications of growing left-tail risk and increasing volatility by trimming net exposure in a timely fashion, or to take advantage of statistical indications of positive skew to enhance returns by opportunistically increasing net exposure to greater than 100%.

The LHA Market State Fund I, LP, a private fund, will make an investment of approximately U.S. $6 million into the new ETF.

According to Little Harbor's Chief Investment Officer-Jeff Landle, CFA, "Investors seeking long-term exposure to the U.S. equity market generally have a choice between 100% long 100% of the time, and/or a systematic approach to exposure management in an effort to deliver better risk-adjusted returns by attempting to avoid unfavorable market conditions while taking advantage of more favorable times. To maximize returns investors want to not only generate gains when the market goes up, but, importantly, to lessen losses when the market goes down."