(BFM Bourse) – This investment company has just submitted a request to the American stock market watchdog for the launch of two new pro-arms index funds meeting criteria of conservatism or political neutrality (in other words “anti-woke”) .
The creativity of Tuttle Capital Management is limitless. This management company founded by Matthew Tuttle, known for having launched an index fund that goes against the beliefs of star CNBC host Jim Cramer, offers two new exotic funds.
Tired of political correctness, Tuttle Capital Management filed a prospectus this Tuesday with the American stock market watchdog, the Securities & Exchange Commission (SEC), for the launch of two ETFs with very marked themes.
An “anti-woke” fund
The management company plans to release an index fund called Tuttle Capital Inverse Socially Conscious ETF, allowing you to invest in companies with conservative or politically neutral perspectives and to bet against so-called “woke” companies. This term is born from the past simple of the English verb “to wake” which means “to wake up”. This ideology, which has gained notoriety over the past ten years, illustrates the fact of being aware of social, ethnic, sexual and religious inequalities.
The investment strategy is very clear, the fund will bet on companies that adhere to “conservative values and beliefs such as American exceptionalism (the belief that the United States is either distinctive, unique, or exemplary compared to other nations), individual liberty and free enterprise”, or political neutrality to select securities of companies that have “no political activity and focus solely on profits and sales,” reads Tuttle’s SEC prospectus.
Conversely, Tuttle Capital Management will exclude companies with high ESG (Environmental, Social, Governance) scores, believing that a lot of attention to ESG could distract from the real financial fundamentals of a company.
The mnemo code for this product is also unequivocal, GWGB which means “Go Woke, Go Broke”, in other words “become woke, lose money”. Tuttle Capital Management implies that investors who favor “woke” companies will be less polished than those who invest in more consensual companies or who completely reject this ideology.
For Tuttle Capital Management, the creation of this ETF is based on the premise that companies that adopt “woke” policies effectively jeopardize their shareholder value. The Tuttle Capital Inverse Socially Conscious index fund therefore intends to sell short 10 to 20 of these companies to capture the underperformance anticipated by the fund on the shares of these companies.
“We think politically neutral companies should outperform those that are trying to promote policies that they can’t get passed at the ballot box,” Tuttle told Benzinga.
Along the same lines, Tuttle also filed a prospectus for an index fund called Tuttle Capital Self Defense Index. Here too, the mnemo code for this ETF is very clear: GUNZ for firearms in English. This targets companies operating in the manufacturing, service, supply and distribution of defense equipment and personal protection services and law enforcement. This time around, Tuttle Capital Self Defense Index seeks to replicate the performance of the AJN Self-Defense US Equity Index.
End clap for the “Long Cramer Tracker ETF”
The launch of these funds comes after the decision of Tuttle Capital Management to lower the curtain on Long Cramer Tracker ETF, the product following the convictions of the star CNBC presenter. The latter is experiencing its final hours, since it will be closed on September 11 and then liquidated on September 21, Tuttle Capital Management announced at the end of August.
This ETF was launched to soften the tone with the presenter anyway, since it was created at the same time as his other index fund betting against the advice of the CNBC star.
Remember that Tuttle Capital Management is not at its first attempt. This management company has also become known for having already marketed an “anti-Cathie Wood ETF” called Tuttle Capital Short Innovation ETF (SARK).
Launched in November 2021, SARK is betting against the Ark Innovation ETF, Cathie Wood’s flagship fund. This is invested in companies with disruptive technologies. For the record, this is the first ETF in the United States to bet against another ETF. After delighting its subscribers in its early days, the “anti-Cathie Wood” ETF is now giving them a cold sweat. The SARK ETF (for Short Ark) has lost 45% since the start of the year while the fund of the “tech” popess has gained as much in the same interval.
“We’re trying to come up with concepts that I think have really good use cases and will be popular. Sometimes you get it wrong. So there’s no way of knowing,” Matthew Tuttle recalled at Newsweek.
Sabrina Sadgui – ©2023 BFM Bourse