The folks at Tidal are teaming up with a pair of Gotham shops to build an ETF powered by both equities and derivatives strategies.

Last week, Gavin Filmore, chief revenue officer of Tidal Financial Group [profile], unveiled the launch of the PEO AlphaQuest Thematic PE ETF (LQPE on the NYSE Arca, Inc.). Tidal Investments LLC serves as LQPE's investment advisor, while AlphaQuest LLC and PEO Partners LLC (both based in New York City) serve as subadvisors and sponsors. (PEO handles the stock strategy, while AlphaQuest handles the derivatives strategy.)

LQPE's inception date was January 27, 2025, and as of yesterday (February 5), it had $14.18 million in AUM. The new fund comes with an expense ratio of 125 basis points.

The PM team for LQPE includes: Randy Cohen, co-founder, co-CEO, chief compliance officer, and head of investment strategy at PEO; Nigol Koulajian, founder, chief investment officer, and principal at AlphaQuest; Jean-Louis Lelogeais, co-founder and co-CEO of PEO; and Christopher Muller, portfolio manager at Tidal.

Filmore says that LQPE offers "a compelling opportunity to access a portfolio that emulates investment themese typical of private equity funds." Cohen describes the new ETF as being powered by "a truly innovative investment strategy that is benchmark-agnostic since the portfolio's investment themes are anchored around private equity."

"We believe the strategy will deliver a distinctive investment performance with the potential for long-term capital appreciation, but manageable drawdowns during market upheavals," Cohen states.

"We look forward to complementing PEO's equity strategy by dually deploying our trend-based hedging program that seeks to reduce downside volatility of performance compared to public markets, as well as trading instruments that increase equity exposure, which private equity funds typically achieve through traditional leverage," Koulajian states.

"We look forward to partnering with PEO and AlphaQuest, whose state-of-the-art investment platforms together form the ideal foundation for this highly innovative offering," Filmore states.

LQPE is an actively managed series of Tidal Trust III. The new fund's other service providers include: ACA's Foreside Fund Services, LLC as distributor; Sullivan & Worcester LLP as counsel; Tait, Weller & Baker LLP as independent accounting firm; Tidal ETF services LLC as administrator; U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as fund accountant and transfer agent; and U.S. Bank National Association as custodian. 

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