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AdvisorShares: Unique Strategies, Aggressive Growth

AdvisorShares has probably been one of the more notable success stories of 2010 in the Active ETF space. AdvisorShares started off the year with only one product on the market, the Dent Tactical ETF [(DENT) :20.46 0.00%], managed by Harry Dent. The fund went nowhere, with asset hovering between $20-$25 million the entire year.

After the mid-year mark though, AdvisorShares really turned up its product development efforts a few notches. The second half of 2010 saw the launch of 4 actively-managed ETFs, each with a different sub-advisor and each following a very interesting and unique investment strategy that investors typically don’t have access to through ETFs. Investors have shown their support as three out of four of those launches have taken off very well after hitting the market. AdvisorShares launched an ADR focused ETF with WCM Investment Management [(AADR) :29.52 0.00%], a global long/short fund with Mars Hill Partners (GRV) :25.10 0.00%], a global tactical fund with Cambria Investment Management [(GTAA) :25.46 0.00%] and a high yield fund with Peritus Asset Management [(HYLD): 50.35 0.00%]. GRV and GTAA were quickly able to gather round about $50 million in assets, while HYLD being the newest has gathered about $15 million. AADR has been the exception as it only has been able to accumulate about $8 million.

The good thing with AdvisorShares’ launches is that each strategy is being run by managers that have a decent track record in that niche and have some sort of awareness already amongst advisors and retail investors. That has helped the funds take off well after getting listed. AdvisorShares’ pipeline is also exciting with a short-only fund coming to market soon and 5 other actively-managed ETFs filed for in collaboration with two different managers. AdvisorShares’ appeal as a platform for small to mid-sized active managers to launch Active ETFs seems to be catching on well with money managers.
http://seekingalpha.com/article/243437-how-the-seven-active-etf-issuers-fared-in-2010?source=yahoo