ACTV Profile
LeaderShares Activist Leaders ETF is an exchange-traded fund that primarily invests in equity securities of companies listed on U.S. exchanges, with a focus on firms that have market capitalizations of at least $1 billion at the time of initial purchase. The fund’s investment strategy is designed to identify and capitalize on companies that are subject to activist investor involvement, aiming to capture value from potential changes in corporate governance, restructuring, or other strategic initiatives influenced by activist shareholders. This focus on activist-led companies sets it apart from other equity-focused ETFs, providing investors with a unique opportunity to benefit from the actions of influential shareholders.
The ETF may concentrate its investments in specific sectors, industries, or groups of industries, depending on where activist activities are most prevalent or where the fund managers identify significant opportunities. This sectoral focus allows the fund to adapt to changing market conditions and the evolving strategies of activist investors, potentially leading to higher returns in targeted areas. By selectively investing in industries undergoing transformation or facing activist pressure, the fund aims to enhance its overall performance while managing sector-specific risks.
LeaderShares Activist Leaders ETF also utilizes derivatives, such as equity options and total return swap agreements, as part of its investment strategy. These financial instruments are employed not only to seek enhanced returns but also to manage risk through hedging. The use of derivatives enables the fund to maintain exposure to certain equity positions while mitigating potential downside risks, making it a versatile tool in the fund's overall portfolio management strategy. The fund’s ability to use these instruments adds a layer of flexibility in achieving its investment objectives, particularly in volatile market environments.
Managed by Redwood Investment Management, LLC, the fund benefits from the expertise of a team that specializes in alternative investment strategies. The fund’s managers apply a disciplined approach to identify companies where activist investors are likely to effect meaningful change, assessing factors such as shareholder proposals, board changes, and other indicators of activist involvement. By doing so, the LeaderShares Activist Leaders ETF seeks to offer investors a differentiated investment product that leverages the dynamic landscape of activist investing to achieve long-term capital appreciation.
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