Concerning HDGE, I was surprised to see one of my 'Best Long Term Stocks' on their list of current shorts (as of May 30) - Cerner (CERN), which is a healthcare IT company with a nice long term chart and strong rev/earnings growth, market cap $19 Bil.
One thing about HDGE versus a regular short ETF like SH (1X short the S+P) is that with HDGE you're relying on active stock picking, on the short side, so there's plenty of room for miscalculation by the fund's managers, so it's basically a hedge fund. But looking at it's performance over time, it does track the SH pretty closely, albeit with more volatility. The annual expense ratio is somewhat higher than SH, at 1.65% vrs .90%. I think Bigworld mentioned that HDGE has some tax advantages compared to a short ETF (long term capital gains treatment) (?)
Looking at HDGE's current short positions, looks like the biggest by far (43%) is in AdvisorShares Sage Core Reserves ETF, which holds short term fixed income, so a quasi cash vehicle or short term bond fund -
AdvisorShares Sage Core Reserves ETF N/A 43.11
GrubHub Inc. Common Stock GRUB 4.74
CarMax Inc KMX 4.36
DEMANDWARE, INC. Common Stock DWRE 3.94
Canon, Inc. American Depositary CAJ 3.63
Cerner Corporation CERN 3.20
Hanesbrands Inc. Common Stock HBI 3.15
Electronics for Imaging, Inc. EFII 3.06
Harley-Davidson, Inc. Common St HOG 2.95
OneMain Holdings, Inc. Common S OMF 2.95
AI
