ETFConcepts, LLC was founded by Seth Warner in 2011 to manage money using trading algorithms he had developed over many years. ETFConcepts’ current sole client is a private hedge fund whose first 7 years have cumulatively beaten the S&P 500. The company is led by Co-CIOs Seth Warner and Bill Kelleher.
Most portfolio managers and investment funds struggle and fail to beat the S&P 500. With a downtrend in investable public companies and a massive expansion in global capital, there are currently too many similar strategies competing for the same alpha. With advances in investment products and investment technology and lots of technical research, ETFConcepts has become a leader in developing tactical strategies to outperform the market. We excel in what has often been deemed a difficult if not impossible investment task - timing the market. ETFConcepts gives one the ability to take portfolio diversification even further by adding exposure to unique strategies that focus on shorter time frames.
Our philosophy is that over the longer-term security prices are driven by fundamentals, but in the short and medium-term as prices converge on their intrinsic fundamental values, prices are primarily driven by changes in investor psychology. Market activity provides significant indications of what investor psychology is at any given time, and our proprietary algorithms extract and use this information to generate timely, favorable buy or sell signals as to general securities market direction. We then use these signals to exploit market volatility by investing on a long, neutral or short basis primarily in broadly-based securities index exchange-traded funds (“ETFs”), such as SPY and QQQ. One might say “it’s a way to beat the market using the market.”
Our sole client is a systematic, rules-based fund that uses our unique, proprietary, robust process to quantify the current strength or weakness in the market. Though they are not perfecti our algorithms are designed to produce positive returns in bullish and bearish markets. In a further effort to achieve returns superior to those of the equity markets, the fund will utilize leveraged ETFs to generate market exposure up to 300% and sell short when the algorithms say to.
- Tactical ETF
- Trading Algorithms
290 East Litchfield Road,
P.O. Box 808
Litchfield, CT 06759