A new actively managed ETF based on a performance-driven hedge fund launched last week called Compound Kings® (KNGS).
Direct-to-investor start-up Upholdings debuted the first-of-its-kind growth ETF. Led by former Everlane CFO Robert Cantwell, Upholdings uses technology to navigate regulatory and financial hurdles to offer individual investors direct access to a performance-driven investment manager.
Cantwell built what he could not find for himself: an investment vehicle providing hedge fund-like returns with the cost efficiency of an ETF.
Through its inaugural ETF, his direct-to-investor platform Upholdings, identifies cashflow compounders: a carefully researched group of no more than 30 companies generating cash and reinvesting at a higher rate of return than the overall market. Since launching in early 2019, Upholdings has outperformed the S&P 500, recording +78% through November 30th, 2020, compared to +29% for the S&P 500 over the same period.
“The retail investor market is one of the biggest in the world, but innovation is way behind,” Cantwell said. “Funds today are either too diversified, too trendy, or too expensive. With KNGS, we’re giving more investors the chance to earn long-term compounding investment performance.”
Veteran hedge fund manager Glen Kacher, Founder & Chief Investment Officer of Light Street Capital, an early investor in the firm, says, “Robert brings unmatched expertise to the public markets with experiences as both an operator and a growth investor.”
At 60 basis points, Compound Kings® is challenging the traditionally high costs charged by performance-driven investment managers. “At Everlane, we built long term value by persistently improving quality and driving down prices. Why shouldn’t actively managed investment funds work the same way?” says Cantwell.
Upholdings performs intensive research by combining customer interviews, alternative metrics, and public disclosures to evaluate target investments. The portfolio targets a maximum of 30 securities. As of January 4th, 2021, the three largest holdings are Airbnb, Alibaba, and Facebook. For more, see www.compoundkingsetf.com.
