Truss Edge LP, the front to back portfolio management solution for hedge funds and ETFs, has announced that it has supported the launch of the Harbor Long-Short Equity ETF, a US-listed fully transparent fund actively managed by Disciplined Alpha LLC.
The newly launched ETF is one of only a few long/short equity ETFs available in the market. The firm writes that there is significant appetite for actively managed funds such as mutual funds to choose the ETF wrapper, which has historically tended to be used as a passive investment vehicle.
The firm adds that Disciplined Alpha is known for its long/short hedge fund track record, and by converting its onshore fund into an ETF, it is breaking into the market at an exciting time, leading this trend.
Truss Edge writes that it has been able to leverage its expertise in servicing some USD15 billion in ETFs and its pedigree as a proven hedge fund portfolio management system, to deliver on the complex challenges required of this new type of investment.
Jay Duffy, CEO of Truss Edge, says: “We are very excited to be bringing a pioneering fund like the Harbor Capital Long-Short Equity ETF to the market; it required our teams and tech to clearly demonstrate how we can support both hedge fund and ETF operational procedures at the same time. With many fund managers now considering the active ETF wrapper as a new and exciting route to market, Truss Edge’s software is well designed to help them to meet these challenges.”
Kevin Shea, CEO of Disciplined Alpha LLC, says: “Disciplined Alpha is excited to partner with Harbor Capital in the launch of LSEQ, the Harbor Long-Short Equity ETF, based on our 10-plus year track record. As part of this launch process, we decided to upgrade our Order Management System (OMS) and Portfolio Accounting System (PAS).
“We reviewed a number of products and found the Truss Edge Safari product had strong capabilities and functionality built specifically for managing ETFs. We quickly noticed the technical robustness as well. We were equally impressed with the ability to customise the product, the speed of implementation, and their thorough customer support. In summary, working with Truss Edge enabled us to meet the complex infrastructure requirements necessary for the smooth launch of LSEQ.”
In operating the Harbor Capital Long-Short Equity ETF, Truss Edge has also worked closely with The Alpha Cooperative, the C—suite services of Finance and Compliance for Disciplined Alpha.
The firm writes that the highly automated, straight through processes and exception handling that Truss Edge provides has been successfully matched with The Alpha Cooperative’s oversight and business management team.
Sara Malak, Co-Founder of Alpha Cooperative says: “The Alpha Cooperative’s focus on providing human capital to manage complex business processes was wonderfully complimented by Truss Edge and its automation capabilities. Partnering with Truss Edge allowed us to fully support Disciplined Alpha as an integral part of its team leading up to the launch of the Harbor Capital Long-Short Equity ETF.”
“Active ETFs bring with them considerable challenges when compared with a traditional, passive ETF,” says Dave Shastri, Chief Strategy Officer at Truss Edge. “Fund managers are looking for a road map that will help them to achieve the operational needs of listing and post-listing with the minimum of drag and complexity. Working closely with Disciplined Alpha, we have demonstrated that Truss Edge is the ideal choice to support a hedge fund that wants to manage an active ETF vehicle.”
Tricia Johnson, Chief Operating Officer at Truss Edge, says: “The implementation of a long/short equity strategy within an active ETF in a two month timeframe was well within the capacities of our team and our technology. Currently there are hardly any true long/short strategies within the active ETF universe. We know hedge fund managers will be needing a realistic solution that can convey their strategies into the ETF wrapper in a reliable operational format. Truss Edge represents that solution.”
