MutualFundWire.com: In Gotham, a Research Shop Takes a Shot At the ETF Space

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Tuesday, November 19, 2024

In Gotham, a Research Shop Takes a Shot At the ETF Space

The folks at a 10-year-old investment research firm's new asset manager affiliate are teaming up with a Midwestern ETF-in-a-box shop to launch an actively managed fund.

Thomas Jong "Tom" Lee
Fundstrat Capital, LLC
Managing Director, Head of Research

Earlier this month, the teams at Fundstrat Capital, LLC and Tidal Investments LLC [profile] rolled out the Fundstrat Granny Shots U.S. Large Cap ETF (GRNY on NYSE Arca, Inc.). Milwaukee-based Tidal serves as GRNY's investment advisor, while New York City-based Fundstrat Capital is the new ETF's sponsor and subadvisor.

GRNY's inception date was November 6, and the new fund comes with an expense ratio of 75 basis points. As of yesterday (Monday, November 18), the ETF had $379 million in AUM.

The PM team for GRNY includes: Qiao Duan, portfolio manager at Tidal; Tom Lee, managing director and head of research at Fundstrat Capital (and co-founder of sister company Fundstrat Global Advisors); Ben McCaig, PM at Tidal; and Ken Xuan, head of data science at Fundstrat Capital.

The name of GRNY, per the Fundstrat Capital team, is a reference to a "granny shot," which they describe as "an unconventional basketball free throw style." The thematic equity fund is powered by a strategy that combines top-down, fundamental research with quantitative, bottom-stock research to pick stocks that align with at least two of seven themes. Those themes include three shorter-term themes (PMI recovery, seasonality, and style tilt) and four longer-term themes (easing financial conditions, energy/cyber security, global labor suppliers, and millennials).

Though Fundstrat Capital is new — it launched in July 2024 ̵ its sister company is no stranger to the ETF space. The launch of GRNY comes about six years after Fundstrat GA licensed an index to another firm for an ETF. (That ETF shuttered in 2019.)

GRNY is a series of Tidal Trust III. The new ETF'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.

Printed from: MFWire.com/story.asp?s=68190

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