WisdomTree Files For Hedge Fund Strategies
By ETFR Staff | June 25, 2009

WisdomTree, a provider of fundamentally weighted ETFs, filed a registration statement with the SEC for three actively managed ETFs: the WisdomTree Long-Short Fund, the WisdomTree Managed Futures Fund and the WisdomTree Real Return Fund.

The Long-Short fund will pair positions in WisdomTree’s own dividend- and profits-weighted ETFs against positions in comparable cap-weighted ETFs. The filing notes that WisdomTree’s fundamentally weighted ETFs “have the potential to outperform” traditional cap-weighted indexes, and this fund aims to capitalize on that potential. The Long-Short fund will be market neutral, holding equal long and short positions, aiming to deliver consistent returns regardless of market direction.

Meanwhile, the Managed Futures fund will use a quantitative strategy that allows it to invest both in securities and derivatives instruments with the goal of providing positive returns that are uncorrelated with the equity or fixed-income markets.

The Real Return fund will, according to the filing, “invest in a portfolio of inflation-linked securities, such as U.S. Treasury Inflation Protected Securities (“TIPS”) and other investment grade fixed income securities, and will have targeted exposures to commodities and commodity strategies.” The filing notes that the fund’s strategy is designed to produce returns that outperform the rate of inflation over the long term.

The expected fees for the funds were not included in the filing.