Upholdings is the first to convert a successful hedge fund into an actively managed ETF
NASHVILLE, Tenn.–(BUSINESS WIRE)–Direct-to-investor start-up Upholdings last week debuted a first-of-its-kind growth ETF, Compound Kings® (KNGS). 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.
Upholdings’ inaugural ETF Compound Kings® (KNGS) identifies cashflow compounders: companies generating cash and reinvesting at a higher rate of return than the overall market. The long-term holding of compounders is a common strategy employed by hedge funds who seek to outperform the S&P 500. For performance of the fund prior to its reorganization into an ETF, please see page 24 of the prospectus available at www.compoundkingsetf.com.
“I created something I couldn’t find for myself. The retail investor market is one of the biggest in the world, but innovation is way behind. 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,” says Cantwell.
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.
Performance data quoted represents past performance and assumes reinvestment of dividends. Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance through the most recent month, email [email protected]. The Fund’s gross expense ratio is 0.60%.
Prior to the commencement of the Fund’s operations on December 30th 2020, the Fund operated as the Flagship Fund, a series of Upholdings Funds LLC (the “Predecessor Partnership”), a private fund that had the same fee schedule as the Fund since the Predecessor Partnership’s inception on March 1st, 2019. The performance data quoted for periods prior to December 30th 2020 is that of the Predecessor Partnership. The Fund’s objectives, policies, guidelines, and restrictions are, in all material respects, equivalent to those of the Predecessor Partnership, which was created for reasons unrelated to the establishment of a track record.
Headquartered in Nashville, Upholdings is a federally registered investment advisor with a mission to bring sustainable financial achievement to real life investors.
Prospectus: Before investing one should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information can be found in the fund’s prospectus, available at www.compoundkingsetf.com. Please read the prospectus carefully before investing.
Investment Risks: An investment in the ETF is subject to investment risk, including the possible loss of principal. There is no guarantee the ETFs’ strategy will be successful. The ETF is non-diversified and may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may result in greater fluctuation in the value of the ETF’s Shares and greater risk of loss.
ETF Considerations: ETF shares may be bought and sold through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained.
Fund holdings are subject to change and are not recommendations to buy or sell any security. A complete list of current holdings by percent of portfolio can be reviewed at www.compoundkingsetf.com/portfolio. Current and future portfolio holdings are subject to risk.
Market Price vs. NAV: Market price is the current price at which shares are bought and sold. Market returns are based upon the last trade price. NAV, by contrast, represents the dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding, calculated at the end of each business day.
No Advice: Nothing contained on this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.
Benchmark: The S&P 500 is an index. The S&P 500 Index or the Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. It is not possible to invest directly in an index.
Management Fee: 60 bps represents the gross expense ratio of the fund: 0.60% of AUM.
The KNGS ETF is distributed by Quasar Distributors LLC. NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
Mo Osbourne, [email protected]
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