Two Actively -Managed ETFs to launch this week on NYSE Arca!

Leatherback Long/Short Absolute Return ETF

Leatherback Long/Short Alternative Yield ETF

Two actively-managed ETFs to launch this week on NYSE Arca: Launching under the Tidal ETF white-label structure. Leatherback, the sub-adviser, is probably eager to launch an ETF so using Tidal ETF's services to do so. I am guessing the name of the sub-adviser is a poetic (?) reference to the testudine's ability to grow slowly even in the harshest of environments.

More on the sub-adviser Leatherback Asset Management, LLC is owned by Eli Fried, who runs a website called GeltGuide.com, is reportedly an adviser to frum families and various other investment organizations:

Leatherback Asset Management ETFs

Summary (see prospectus for full info):

Leatherback Long/Short Absolute Return ETF

Ticker: LBAR

Expense ratio: 1.13%

Investment universe: U.S. stocks

Investment Strategy:

The fund will go long from 0 to 80%. Fund will invest mainly in stocks, but also invest in bonds, sometimes.

Sub-adviser will decide on long positions based on:

• quantitative and fundamental analysis
• focus on companies with high margins and high return on invested capital
• in industries that Eli expects to outperform over a several year period
• will consider securities with dividends with growth, or no dividends at all
• companies with unique opportunities (spin-offs, emerging from bankruptcy, etc)

Leatherback will decide on short positions by:

• looking for financial/accounting anomalies in companies' financial statements 
• identifying short term fads leading to overvalued securities (reminds me of tamagotchi)
• looking for companies with poor governance records (what's the definition of poor governance, what's the threshold?)
• buying put options on equity securities or ETFs (sloppy throw-away line: like, in general?? What is the method to decide which ones to buy puts on??)

Leatherback Long/Short Alternative Yield ETF

Ticker: LBAY

Expense ratio:1.09% (little less juicy than the other one, which makes sense as the focus is on yield and expenses cut into that)

Investment universe: U.S. stocks

Investment Strategy:

The fund will go long from net 75%-110%. Fund will invest in securities believed to provide sustainable shareholder yield (defined as dividends plus buybacks plus debt paydowns) and taking short positions in securities expected to decline in price.

LBAY may write (sell) covered calls up to 100% of the value of the Fund’s individual equity security or an index when Leatherback believes call premiums are attractive relative to the price of the underlying security or index.

Sub-adviser will decide on long positions based on:

• whether security is expected to pay a dividend and ability to grow that dividend
• quantitative and fundamental analysis
• focus on companies with high margins and high return on invested capital
• in industries that Eli expects to outperform over a several year period
• will consider securities with dividends with growth, or no dividends at all
• companies with unique opportunities (spin-offs, emerging from bankruptcy, etc)

Leatherback will decide on short positions by:

• identifying idiosyncratic ideas that suggest a security's price will decline (actual words written in the prospectus!)
• looking for financial/accounting anomalies in companies' financial statements 
• identifying short term fads leading to overvalued securities
• looking for companies with poor governance records
• buying put options on equity securities or ETFs

Hearsay says: The active ETF field is already crowded: Average lifespan of a leatherback turtle is thought to be around 30 years, but Mr. Fried has three years to establish a track record that will allow it to entice methodical investors and financial advisers, while paying Tidal and its partners.