Montaka Global Investments, a Sydney hedge fund, is listings its second actively-managed ETF on the ASX.
The Montaka Global Extension Fund (MKAX), which began trading yesterday, will use a sophisticated investment strategy that involves both buying companies for the long-term while also short selling businesses it judges to be duds.
The investment strategy is called “long-short”, in the jargon and is far more common among hedge funds than among ETFs.
The future of active ETFs in Australia
MKAX will look to buy roughly 20 companies and hold them for the long term. Companies will be picked based on how cheap they are relative to the amount of money they make.
The fund will aim to short sell roughly 30% of its assets. It will use the proceeds to buy more shares. In this way, the fund will attempt to have a 100% net long position at all times.
Investment bank Macquarie will act as the agency market maker for the fund which will charge is 1.25%.
Montaka is also the investment manager of the Montgomery Global Equities Fund Managed Fund (MOGL), which his distributed by Montgomery Funds.
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