NEW YORK, NY --(Marketwired - September 29, 2016) - Blue Tractor Group, LLC ("Blue Tractor") today announced that it has filed an amended and restated application ( "Application") with the U.S. Securities and Exchange Commission ("SEC") seeking exemptive relief from select provisions of the Investment Company Act of 1940 for a novel exchange traded fund ("ETF") structure called a Shielded Alpha℠ ETF.
A Shielded Alpha℠ ETF would seek to incorporate the structural attributes and efficiency of a transparent actively managed ETF, while fully shielding the ETF's alpha generation strategy and portfolio trading from the market. Referred to as the Shielded Alpha℠ Solution, the patent pending algorithms and related performance metrics would seek to facilitate pricing, hedging and arbitrage without requiring the ETF to disclose its portfolio to the public or third parties on a daily basis.
Blue Tractor's Application was prepared by Michael W. Mundt, a Partner in the Washington DC office of Stradley Ronon Stevens & Young, LLP and is available for review on the SEC's website through the EDGAR database at www.sec.gov.
Terence (Terry) Norman, Founder of Blue Tractor and the originator of the novel concepts underpinning the Shielded Alpha℠ ETF structure commented, "We have appreciated the feedback received from the SEC regarding our initial application submitted in March 2016 and are pleased to file an amended and restated application. We look forward to working with the SEC on this important initiative."
Simon Goulet, Co-Founder of Blue Tractor added, "With billions of dollars of equity assets under management in the U.S. flowing into passive transparent ETFs, it will become a strategic imperative for traditional active managers to be able to offer investors actively managed products that could provide the trading and cost efficiencies of a transparent ETF, while still preserving proprietary alpha strategies."
The Application indicates that Blue Tractor also seeks to enter into licensing agreements with unrelated investment advisers that could utilize the Shielded Alpha℠ Solution for their own Shielded Alpha℠ ETFs.
About Blue Tractor Group
Blue Tractor Group, LLC develops proprietary solutions to facilitate novel exchange traded fund products. Blue Tractor's Shielded Alpha℠ ETF structure (patent pending) allows for active fund management within an ETF wrapper, while fully shielding an ETF's proprietary alpha strategy. Please visit www.bluetractorgroup.com for additional information.