Blue Tractor Group Files a Fourth Amended Application with the United States Securities and Exchange Commission for its Shielded Alpha℠ Exchange Traded Fund Structure Permitting Active Management Without Complete Daily Portfolio Disclosure

NEW YORK, Jan. 17, 2018 -- Blue Tractor Group, LLC ("Blue Tractor") is pleased to announce a fourth amended and restated application ("Application") filing today with the U.S. Securities and Exchange Commission ("SEC") for its novel exchange traded fund ("ETF") structure called a Shielded Alpha℠ ETF. 

As described in the Application, a Shielded Alpha℠ ETF facilitates active fund management within an ETF wrapper, but unlike current transparent actively managed ETFs, does not require full portfolio disclosure on a daily basis for efficient pricing, hedging and arbitrage.  If the Application is approved by the SEC, actively managed ETFs issued under Blue Tractor’s novel structure would reveal to the market on a daily basis all portfolio holdings, but crucially not their specific weightings.  As a result, use of the Shielded Alpha℠ solution would enable fund managers to issue actively managed ETFs while still fully obscuring their proprietary alpha generation strategies from the market.

Including the initial application filed March 14, 2016, the January 17, 2018 filing is Blue Tractor’s fifth filing for the Shielded Alpha℠ ETF structure in under twenty-four months, reflective of Blue Tractor’s ongoing dialogue with the SEC. 

Terence (Terry) Norman, Founder of Blue Tractor commented, "We are very appreciative of the dialogue we’ve enjoyed with the SEC.  It has allowed us to refine our structure to meet the needs of fund managers, investors, authorized participants and market makers, custodians, distributors and exchanges.  As importantly, from day one our structure has been designed to embrace the fundamental principles under the federal securities law of promoting fair markets and investor protection.”

Blue Tractor's Application was prepared by Michael W. Mundt, a Partner in the Washington DC office of Stradley Ronon Stevens & Young, LLP and is available for review on the SEC's website through the EDGAR database at www.sec.gov. 

Simon Goulet, Co-Founder of Blue Tractor added, "It’s been important for us to ensure that the market fully appreciates that our structure is not a non-transparent ETF – it is actually highly transparent.  However, our structure is not fully transparent, and would permit fund managers to shield their trading strategies by avoiding disclosure of the specific weightings of their portfolio positions.  We remain buoyed by the SEC feedback so far and look forward to continued constructive discussions with the SEC.”

The Application indicates that Blue Tractor seeks to enter into licensing agreements with unrelated investment advisers that could utilize the Shielded Alpha℠ solution for their own Shielded Alpha℠ ETFs.

About Blue Tractor Group

Blue Tractor Group, LLC develops proprietary solutions to facilitate novel exchange traded fund products. Blue Tractor's Shielded Alpha℠ ETF structure (patent pending) permits active fund management within an ETF wrapper, while fully shielding the fund's proprietary alpha strategy. Please visit www.bluetractorgroup.com for additional information.

Contact Information

Simon Goulet
[email protected]
(212) 847-1370