Hedgeye Asset Management Launches the Hedgeye Capital Allocation ETF (HECA) Managed by Veteran PM David Salem
Hedgeye Asset Management Launches the Hedgeye Capital Allocation ETF (HECA) Managed by Veteran PM David Salem |
| [01-July-2025] |
STAMFORD, Conn., July 1, 2025 /PRNewswire/ -- Hedgeye Asset Management, LLC ("HAM"), a subsidiary of Hedgeye Risk Management, LLC, today announced the launch of the Hedgeye Capital Allocation ETF (NYSE: HECA)— an actively managed ETF that seeks long-term capital appreciation by maximizing total returns across global market cycles, while avoiding drawdowns exceeding 15%.
Managed by HAM under veteran portfolio manager David Salem, who previously oversaw in excess of $8 billion on behalf of 800+ endowed charities as president and chief investment officer of The Investment Fund for Foundations, the Fund uses a rules-based process centered on a proprietary algorithm, Hubble, which ranks securities based on Hedgeye's proprietary macroeconomic ("Quads") and market-derived ("Signals") data. "David is an experienced allocator whose integrity and investment discipline speak for themselves," said Hedgeye's CEO, Keith McCullough. "He calls our Quads and Signals the 'greatest productivity hack' he's ever used—which is both humbling and a huge vote of confidence." Deploying a "go anywhere" but not everywhere strategy regarding asset allocations, HECA primarily invests in passively managed ETFs and seeks to maintain low turnover, with the aim of appealing to fiduciaries and long-term allocators. HECA is designed to serve as a durable, all-weather allocation solution for long-term investors. For more information on HAM or HGRO please email info@hedgeyeam.com or visit our website https://hedgeyeam.com/ and X page https://x.com/hedgeyeam. Definitions Drawdowns: Drawdowns are the measurement of a decline in the value of a portfolio from a peak to a subsequent trough, in percentage terms. Quads: Quads as used here mean the evolving locations of each of 50+ national economies within four-quadrant plots like the stylized example below in which the vertical axes measure rates of change (ROCs) in real or inflation-adjusted Gross Domestic Product and the horizontal axes measure ROCs in CPI inflation (or its closest equivalent for countries not reporting CPI inflation per se) Signals: Signals as used here mean a carefully defined set of security-specific indicators that the Manager deems useful in estimating the future price trajectory of securities comprising the Fund's selection universe. Some of these indicators are proprietary. Most are not, although their precise use reflects weighting schemes crafted by the Manager (and embodied in Hubble Ranks) that are presumably unique to HAM. Go anywhere but not everywhere: "Go anywhere but not everywhere" refers to the approach of investing in a wide range of assets and geographies (going anywhere), but not blindly investing in everything (not everywhere). Important Information Before investing in the fund, the investment objective, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the fund. Copies of the fund's prospectus may be obtained by visiting www.hedgeyeam.com/HECA or calling +1 (888) 711-8292. Read it carefully before investing. Investing involves risks including the risk of principal loss. The Adviser is newly formed and has not previously managed an ETF. Accordingly, investors in the Fund bear the risk that the Adviser's inexperience may limit its effectiveness. The Fund is non-diversified, which means that it may invest a large percentage of its assets in a particular issuer and increases the risk that the value of the Fund could decrease due to poor performance of a single investment or limited number of investments. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. As an actively managed investment portfolio, the Fund is subject to the Adviser's investment decisions about individual securities impact on the Fund's ability to achieve its investment objective. there is no guarantee that the Adviser's investment strategy will meet it's investment objective or produce the desired results. Large cap companies may be less able than mid and small capitalization companies to adapt to changing market conditions. Investments in stocks of mid-capitalization companies may be subject to more abrupt or erratic market movements The Fund's investment strategies may employ quantitative algorithms and models that rely heavily on the use of proprietary and non-proprietary data, Models may also have hidden biases or exposure to broad structural or sentiment shifts. There can be no assurance that use of a quantitative model will enable the Fund to achieve positive returns or outperform the market. When the Fund uses derivatives, there may be imperfect correlation between the value of the underlying instrument and the derivative, which may prevent the Fund from achieving its investment objective. ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. The Distributor is Foreside Fund Services, LLC.
SOURCE Hedgeye Asset Management | ||
Company Codes: NYSE:HECA |
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