I’m very pleased to be joining Ranger Alternative Management, the Sub Advisor of the Ranger Equity Bear ETF (HDGE). After a long hibernation since 2008, I’m getting ‘back in the game’ after selling my interest in the Prudent Bear Fund family of funds to Federated Investors. I have been out of the market for more than a decade, concentrating on private equity, cybersecurity angel investing, movie making and charitable endeavors. I have watched with great interest as the market has experienced an 11-year spectacular bull run largely through piling up debt while the economy grew at its slowest rate of any expansion over the last fifty years.
Now, after this hiatus, it has become obvious to me that another secular bear market lays in front of us. I’ve decided to join two partners who have Dallas connections going back a couple of decades. I’ll be joining Brad Lamensdorf and John Del Vecchio at Ranger Alternatives as Chief Investment Officer. Ranger Alternatives is the Sub Advisor to HDGE is an actively managed ‘short’ ETF that has a decade-long track record of effectively managing the short side through turbulent markets. Both these individuals are exceptional investment management professionals, hard-working and ethical with a deep understanding of volatile financial markets, and both possess tactical skills in portfolio management. John Del Vecchio worked with me more than fifteen years ago as an analyst ‘tearing apart’ financial statements at the research firm I founded in 1988, where he wrote reports for Behind the Numbers. He later went on to write a best-selling book about the same subject and has concentrated his fundamental short stock picks to companies facing significant quality of earnings deterioration. This is obviously a style that I believe in, as I founded Behind the Numbers. Brad Lamensdorf learned his investment skills working for the Bass Brothers under the legendary Tommy Taylor and Richard Rainwater. He led a small group’s intensive research effort to better time entry and exit points for short exposure utilizing technical analysis where he developed tactics to help improve short-side performance. John and Brad started managing the Ranger Equity Bear ETF in 2011 after managing a short-biased hedge fund in 2008-2009.
I’m looking to make a couple of small changes to the fund at the margin. You’ll be hearing more about those plans later. I truly look forward to being an active contributor to this organization and helping bring attractive rates of return to our shareholders. I am eager to provide an efficient ‘hedge’ against what I believe will be a significant secular bear market ahead.
David Tice, CFA
Tice Capital, LLC
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. The Fund may invest in (or short) ETFs, ETNs and ETPs. In addition to the risks associated with such vehicles, investments, or reference assets in the case of ETNs, lack of liquidity can result in its value being more volatile than the underlying portfolio investment. Other Fund risks include market risk, equity risk, short sales and leverage risk, large cap risk, early closing risk, liquidity risk and trading risk. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund. See prospectus for specific risks and details.