On Monday, Nightview Capital made its debut on the ETF market with the launch of The Nightview Fund (NITE ). The fund is actively managed and carries a net expense ratio of 1.25%. It aims to provide investors with long-term capital appreciation while outperforming the S&P 500 Total Return index over a five-year period.
As the fund title implies, NITE uses Nightview Capital’s fundamental investing approach. Primarily, the fund invests in instruments and securities tied to or issued by U.S. issuers. However, NITE may also invest in U.S.-traded assets that are economically tied to developed international markets.
Long-Term View
In evaluating assets, Nightview Capital prioritizes forward-looking valuation and analysis. In doing so, the fund does not particularly emphasize technical or macroeconomic analysis in a meaningful way. Instead, NITE evaluates assets based on a security’s value and how the market will value it down the line.
“In terms of how we’re ultimately getting to ideation, we’re starting at the global economic level, and then we’re looking for opportunities where we see tailwinds over the next several years, and then just drilling down into where we see the best opportunities within those tailwinds,” noted Daniel Crowley, CFA, Nightview Capital portfolio manager.
Prospective investments within NITE are contextualized with a minimum investment time frame of three years. Generally speaking, NITE will only select securities that Nightview Capital is comfortable holding for multiple years.
“By just simply taking a longer-term view, we have the opportunity for time arbitrage, for letting our thesis play out, for letting the conviction and the fundamental research really play out in the thesis,” added Eric Markowitz, Nightview Capital Director of Research.
The portfolio for NITE usually contains roughly 15-25 securities. Most of the time, the fund plans to be fully invested, not holding more than 5% in cash or cash equivalents.
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