TrimTabs Asset Management recently celebrated the fact that its flagship fund, the TrimTabs All Cap US Free-Cash-Flow ETF (TTAC), has crossed the $100 million asset threshold. As of August 8, 2018, TTAC assets under management totaled $105.1 million.
TTAC, which began the year with $38 million in assets, is an actively managed ETF that focuses on generating long-term returns in excess of those of the Russell 3000 index. The Fund is built around TrimTabs’ expertise in selecting companies that have generated strong free cash flow growth, improving balance sheets and reducing their share count.
Since going live on September 27, 2016, TTAC has returned 49.78 percent (cumulative NAV, through August 8, 2018). Over that same time frame, its benchmark Russell 3000 has returned 37.40 percent.
TTAC 1-Year returns were 21.25% (NAV) and 20.77% (Market Price) as of June 30th, 2018 compared to the Russell 3000 gain of 14.78%. TTAC Annualized Since Inception returns were 22.79% (NAV) and 22.91% (Market Price) as of June 30th, 2018, compared to the Russell 3000 gain of 16.54%. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (toll free 800-617-0004). Expense ratio: 0.59%
“Crossing the $100 million mark is an exciting moment for our firm, our investors and for the Fund,” said Janet Johnston, co-portfolio manager for TTAC. “We are strong believers in active management, and in the potential investor benefits inherent in the ETF structure, such as liquidity, transparency and lower costs. To see the marketplace react so positively to what we’re doing with TTAC is very gratifying.”
Ms. Johnston is joined by Ted Theodore in managing TTAC, and between the two of them they have decades of experience in portfolio management and equity research.
“By focusing on high quality companies with healthy balance sheets, cash on hand to grow their businesses, and share buyback programs funded by free cash flow rather than debt, investors may have the opportunity to add alpha to their core equity portfolio,” continued Johnston. “That’s precisely what we set out to do when we constructed TTAC and we’re very pleased with the results. We’re also very excited for what’s to come in the next phase of our growth.”
About TrimTabs Asset Management
TrimTabs Asset Management (TTAM) was founded in 2008 by Charles Biderman, based on the belief that investors should be able to access alpha-oriented strategies that aim to outperform the broad market without paying high management fees. TrimTabs’ investment products are based on 25 years of TrimTabs Investment Research. TTAM has a veteran staff with deep experience in portfolio management, marketing, trading, compliance and operations.
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1800617-0004. Read it carefully before investing.
There is no guarantee that TTAC will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small and midcap securities, which involve limited liquidity and greater volatility than large cap securities.
The TrimTabs All Cap US Free‐Cash‐Flow ETF is distributed by Quasar Distributors, LLC.
Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.
The Russell 3000 Index measures the performance of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The Index measures the performance of approximately 98% of the total market capitalization of the publicly traded U.S. equity market. It is not possible to invest directly in an index.
Alpha is a measure of performance on a risk adjusted basis.
Chris Sullivan/Caroline Emerson