ETFs & Mutual Funds
Quant Mutual Fund Defies Industry Norm With Leveraged Nasdaq Bet
- A $1.6 billion fund with triple-leveraged Nasdaq ETF beats S&P
- ‘I don’t think these are high risk’: Howard on his strategy
This article is for subscribers only.
Just outside Atlanta, a 60-year-old wealth adviser says he’s figured out how to “remove the emotion from the investing process.” How? By stuffing his mutual funds with ETFs that use leverage to amp up the daily returns of the Nasdaq 100, while using quantitative tactics to figure out when to dart in and out of the market.
Lately this unconventional approach, in the otherwise staid world of long-only asset management, has been working. Vance Howard’s HCM Tactical Growth Fund has beaten 96% of its peers over the last five years with an annualized gain of 20%.