HFGM: Ex-Bridgewater Exec's New Global Macro Hedge Fund ETF

Yahoo

21-04-2025

Unlimited Funds, a private markets investment firm co-founded by Bob Elliott, a former senior investment executive of Bridgewater Associates, recently introduced a new exchange-traded fund to give investors exposure to global macro hedge fund-style strategies. The actively managed Unlimited HFGM Global Macro ETF (HFGM) is 'dynamically allocating capital long and short across a wide range of global market opportunities in search of mispricing,' according to a press release issued last week.
It uses liquid exchange-listed futures contracts and a basket of exchange-traded funds based upon systematic signals and aims to offer diversification benefits by adjusting positions based on evolving market conditions. The expense ratio is 1%.
"With the amount of uncertainty in both the stock and bond markets right now, and for the foreseeable future, investors of all types are looking for strategies that have the flexibility to go long and short across major asset classes, providing diversification to traditional long-only positions,' Elliott told etf.com. 'Global macro strategies have traditionally achieved that."
The launch of HFGM is the latest move from Unlimited to offer investors access to hedge fund-style strategies without the high fees and tax inefficiencies that can often come with this type of investing and erode performance. The firm also introduced the Unlimited HFND Multi-Strategy Return Tracker ETF (HFND) in 2022.
The firm plans to launch 'several' new actively managed ETFs over the coming months, according to the press release. These include two strategies that have been approved by the Securities and Exchange Commission with launch plans in the works for later this year: the Unlimited HFMF Managed Futures ETF and the Unlimited HFEQ Equity Long/Short ETF.
The aim of HFGM is to capitalize on global market mispricing opportunities spanning currency, fixed-income, equity, credit and exchange rate markets, according to the release.
Macro strategies can offer meaningful diversification benefits, particularly during periods of elevated market volatility and uncertainty, Rob Kane, director of alternative investments on the Investment Management and Research team at Commonwealth Financial Network, told etf.com These environments often prompt decisive action from major market influencers—most notably, central banks—which can create trading opportunities across asset classes, he added.
'To capitalize on these dynamics, successful macro managers typically rely on either an informational edge or a strong ability to anticipate how policy decisions and macroeconomic shifts will impact markets, leading to opportunistic long and/or short positioning,' Kane said.
He added that, while his firm hasn't fully analyzed HFGM, 'Investors should recognize that this ETF does not invest directly in underlying hedge fund managers.' Rather, it seeks to replicate positioning by analyzing and decomposing return drivers, risk exposures and portfolio characteristics. 'The strategy also targets a higher level of volatility, helping to align its return potential with that of the hedge fund managers it aims to emulate—many of whom use substantial leverage in executing macro strategies.'Permalink | © Copyright 2025 etf.com. All rights reserved