AdvisorShares [see profile]has a new exchange-traded fund on the way. Today the Bethesda, Maryland-based active ETF shop revealed that it will launch the TrimTabs Float Shrink ETF, PMed by a team from TrimTabs Asset Management, on October 5.
The fund uses a proprietary research strategy to invest in "companies who are not borrowing more, and are growing free cash flow and using that cash to shrink the trading float of shares."
"Top insiders at a firm know more about its fundamentals than the investing public," stated Charles Biderman, founder and CEO of TrimTabs. "We have discovered that float shrink, free cash flow and debt/equity analysis have been good indicators in determining future performance of stocks."
AdvisorShares boasted 10 active ETFs with more than $370 million as of September 1.
Company Press Release
BETHESDA, Md., Sept. 9, 2011 -- AdvisorShares Investments, LLC, a sponsor of actively managed Exchange Traded Funds (ETFs), announced today that the TrimTabs Float Shrink ETF (NYSE: TTFS) will open for trading on Wednesday, October 5, 2011. The portfolio management team of TTFS is a part of TrimTabs Asset Management ("TrimTabs"). TTFS' investment objective is based on TrimTabs proprietary research, which measures the change in float shrink (net change in number of shares outstanding), the change in free cash flow (after tax income + non cash charges - capital expenditures) and net debt issuance. The strategy selects the top 100 U.S. stocks based upon float shrink, free cash flow growth and net equity ratios from the largest 3,000 U.S. based companies. Those 100 stocks are then equally weighted and periodically reallocated and rebalanced as corporate metrics change. TrimTabs believes that companies who are not borrowing more, and are growing free cash flow and using that cash to shrink the trading float of shares could outperform.
Charles Biderman, Founder and Chief Executive Officer of TrimTabs, said, "Top insiders at a firm know more about its fundamentals than the investing public. We have discovered that it has been strategic over the years to buy the overall market when the trading float of shares is shrinking; and to sell the overall market when the trading float of shares is growing. We have discovered that float shrink, free cash flow and debt/equity analysis have been good indicators in determining future performance of stocks."
"Many investors are familiar with Charles Biderman from his regular appearances on CNBC and Bloomberg TV as well his frequent quotes in the financial media, and know that he is a go-to resource in the area of stock market liquidity. His firm, TrimTabs, is the leading independent institutional research firm focusing on stock prices as a function of supply and demand rather than value," said Noah Hamman, CEO and Founder of AdvisorShares.
"We believe investors will be excited about TTFS because it is a fundamentally attractive alternative for U.S. equity market exposure to a Russell 3000 or S&P 500 Index. Why own the entire U.S. market when you can buy the 100 companies shrinking their trading float of shares, growing cash flow and not borrowing to buy back shares?"
To request more information on AdvisorShares or TTFS, please contact Noah Hamman or Chuck Robertson at 202-657-6383, email@example.com or firstname.lastname@example.org. To request more information on TrimTabs, please contact Richard Stern at Stern & Co., 212-888-0044, email@example.com, or Charles Biderman at TrimTabs, 707 527-1501, Charles.Biderman@trimtabs.com.
AdvisorShares is one of the leading providers of actively managed ETFs. As of 09/1/2011 AdvisorShares offers 10 active ETFs with over $370,000,000 of assets under management. AdvisorShares is pleased to offer actively managed ETFs, including the
AdvisorShares provides educational support to help investors understand ETFs, and the underlying investment strategy for each of the AdvisorShares ETFs. AdvisorShares continues to seek qualified sub-advisor investment partners to offer compelling investment strategies in an active ETF structure. Visit our website at www.advisorshares.com to learn more about us. Follow the AdvisorShares Team on Twitter or 'Like' us on Facebook.
About TrimTabs Investment Research LLC
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity -- including corporate liquidity flows, hedge fund flows, mutual fund flows and exchange-traded fund flows -- as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. Around a third of the top 30 macro hedge funds use TrimTabs' research. For more information, please visit www.TrimTabs.com.
About TrimTabs Asset Management, LLC
Trim Tabs Asset Management, LLC was established in 1995. Trim Tabs Asset Management, LLC serves as investment adviser to a variety of individual and institutional investor accounts.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Other Fund risks include market risk, equity risk, large, mid and small cap risk, liquidity risk and trading risk. Newly organized, the Fund has no trading history and there can be no assurance that active trading markets will be developed or maintained.
The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.