New Trade for August 22nd, 2022

The downturn in equity markets made for a lucrative start to 2022 for short sellers.  A report from investment data firm S3 Partners revealed year-to-date through May 16th, short-sellers had raked in an astonishing $215.6 billion in market-to-market profits.  After a robust market-wide summer rally, stocks seem to be cooling off once again.  The major indices began today’s session with losses of 1% or more.  

In times like this, a short position can reward handsomely.  However, for many everyday investors, the risks associated with selling stocks are too steep to justify.  While a stock can only fall to zero, it can climb infinitely, making the risk of loss on a short sale theoretically unlimited.  

Today we’re featuring a unique approach to short-selling that allows investors to take a position inverse to a curated selection of large and mid-cap stocks.  This approach appeals to bearish investors who are looking to reap the benefits of a position opposite potential losers but aren’t 100% focused on watching the market.   

The AdvisorShares Ranger Equity Bear ETF (HDGE) is unlike most products offering short exposure to domestic and international equity markets as it is an actively-managed fund that seeks to identify candidates for short selling based on forensic accounting and other quant-based methodologies. 

The fund is making the most of a bad situation, posting positive returns as stocks continue to weaken.  As an actively managed portfolio of individual components (versus a fund that’s inversely correlated to the market), HDGE offers the unique benefit of a time cushion in the event of a slow recovery, unlike a bear market or inverse fund where a market recovery would likely lead to an immediate loss in value. 

The managers behind this fund have an impressive track record, and the fund has a wide variety of potential applications depending on an investor’s outlook for the U.S. market.  The primary downside of this ETF is the hefty 5.2% expense ratio.  The fund’s strategy also involves frequent buying and selling of securities, which may lead to a high portfolio turnover and, consequently, create a drag on returns. 

Overall, HDGE enjoys a solid asset base and can be used as an alternative for ‘vanilla’ inverse equity funds.  Its unique approach provides a solution for bearish investors who aren’t 100% focused on watching the market.

Should you invest in HDGE right now?

Before you consider buying HDGE, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not HDGE.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...