According to today’s email from Eddy Elfenbein at Crossing Wall Street, he has a new ETF:
<<<The official name of the ETF is the AdvisorShares Focused Equity ETF. The ticker symbol is CWS, for Crossing Wall Street!>>>
Since this board just made me aware of this gentleman, I was wondering if anyone had an opinion regarding the future of this ETF. If it replicates the returns posted by Elfenbein in the past then it should be a good place to park yourself, no?
If so, what % of your investable funds, would you consider smart yet prudent?
As far as the future of this CWS ETF, only time will tell. The 10 year history of Eddie’s performance is impressive. Can he continue that streak, and will he be able to do so “in the market” vs. on paper. I think so.
I like the variable expense ratio that is linked to performance.
From an allocation perspective, that is really up to you based on your current situation and future plans. For me, I add $5K per month of new money to my portfolio. So, this month, I decided to purchase CWS with the entire amount. My plan is to purchase more over time when I see good buying opportunities.
One thing that I want to keep an eye on is his allocation strategy. At the end of each year, Eddie sells off 5 companies, and adds 5 new ones. But, as I understand his approach, he invests an equal amount in all 20 companies at the beginning of each year. That means there will be some buying and selling to true things up. He won’t necessarily be letting the winners become over-weight. So far that strategy has allowed him to beat the market in something like 8 of 10 years. But again, that is on paper. Now he has to deal with true market conditions- bid/ask, purchasing large chunks of stock, etc.
I’m excited to have CWS part of my port, mainly because of Eddie himself. I like his style and approach.