Hedgeye Asset Management Launches the Hedgeye Quality Growth ETF (HGRO) Managed by Veteran PM Sam Rahman
Rhea-AI Summary
Positive
- Experienced portfolio manager with 30+ years of investment experience
- Concentrated portfolio strategy with high-conviction positions (40-50 stocks)
- Flexible investment approach allowing adaptation to market conditions
- Disciplined investment process combining bottom-up research and macro analysis
Negative
- Newly formed adviser with no previous ETF management experience
- No operating history or track record for investor evaluation
- Potential risks associated with concentrated portfolio strategy
- Higher risk due to active management approach
Insights
New actively-managed HGRO ETF launches with veteran PM Sam Rahman targeting quality growth stocks with concentrated 40-50 position portfolio.
Hedgeye Asset Management has introduced the Hedgeye Quality Growth ETF (HGRO), an actively managed fund focused on large-cap equities with a three-year investment horizon. The portfolio is managed by Sam Rahman, who brings over 30 years of global investment experience, including 15 years at the Fidelity family office (Crosby Advisors).
The fund's investment approach is structured around three distinct categories: Deep Moat Compounders, Innovators/Disruptors/S-Curve Beneficiaries, and Idiosyncratic Special Situations. This framework suggests a blend of established quality businesses and high-potential growth opportunities.
HGRO's portfolio construction is notably concentrated with 40-50 holdings, positioned by conviction level and sector diversification. This relatively focused approach differentiates it from broader index products while still maintaining some diversification principles. The "go anywhere" flexibility within its large-cap universe potentially allows the manager to adapt to changing market conditions without strict sector constraints.
The fund represents Hedgeye's expansion into ETF asset management, leveraging their existing research platform. However, investors should note this is a new fund with no operating history, and the advisor itself is newly formed with no previous ETF management experience – key risk factors highlighted in their own disclosure.
For investors seeking actively managed exposure to quality growth companies with a multi-year investment horizon, HGRO offers a transparent, liquid vehicle managed by an experienced portfolio manager, though its performance capabilities remain unproven.
HGRO is managed by veteran portfolio manager Sam Rahman who brings over 30 years of global investment experience, including 15 years at Crosby Advisors—the Fidelity family office. The strategy reflects Rahman's rigorous approach—integrating deep, bottom-up stock research, macro/thematic analysis, and disciplined portfolio construction and risk management.
"Sam is a seasoned investor with a history of identifying winning stocks and investment themes," said Hedgeye CEO Keith McCullough. "Having worked with him during his time at Crosby Advisors, I'm very excited to welcome him to the Hedgeye Asset Management platform."
HGRO targets companies across three core categories:
- Deep Moat Compounders
- Innovators, Disruptors & S-Curve Beneficiaries
- Idiosyncratic Special Situations
The fund is benchmarked to the S&P 500 but takes a flexible, "go anywhere" approach in pursuit of durable and positive rate-of-change growth. The portfolio typically holds 40–50 names, sized by conviction and diversified across sectors, with a design focused on maximizing risk-adjusted returns.
HGRO offers investors a concentrated, research-driven strategy built to capture quality growth opportunities in dynamic markets.
For more information on HAM or HGRO please email info@hedgeyeam.com or visit our website https://hedgeyeam.com/ and HAM's official page on X: https://x.com/hedgeyeam.
Index Definitions
S&P 500 Index (Ticker: SPX Index): The S&P 500 is a stock market index that tracks the stock performance of 500 of the largest companies listed on stock exchanges in
Definitions
S Curves: S Curves illustrate the non-linear progression of growth, where the trajectory of change or adoption follows a characteristic S-shaped pattern. This concept is used to convey how a particular sector, innovation, or investment theme may experience gradual early adoption, rapid acceleration, and ultimately maturity or saturation.
Important Information
Before investing in the fund, the investment objective, risks, charges and expenses must be considered carefully before investing. The statutory prospectus contains this and other important information about the fund. Copies of the fund's prospectus may be obtained by visiting www.hedgeyeam.com/HGRO or calling +1 (888) 711-8292. Read it carefully before investing.
Investing involves risks including the risk of principal loss. The Adviser is newly formed and has not previously managed an ETF. Accordingly, investors in the Fund bear the risk that the Adviser's inexperience may limit its effectiveness.
Diversification neither ensures a profit nor guarantees against loss in a declining market.
The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
As an actively managed investment portfolio, the Fund is subject to the Adviser's investment decisions about individual securities impact on the Fund's ability to achieve its investment objective. there is no guarantee that the Adviser's investment strategy will meet it's investment objective or produce the desired results. Large cap companies may be less able than mid and small capitalization companies to adapt to changing market conditions. Investments in stocks of mid-capitalization companies may be subject to more abrupt or erratic market movements.
The Fund's investment strategies may employ quantitative algorithms and models that rely heavily on the use of proprietary and non-proprietary data, Models may also have hidden biases or exposure to broad structural or sentiment shifts. There can be no assurance that use of a quantitative model will enable the Fund to achieve positive returns or outperform the market.
When the Fund uses derivatives, there may be imperfect correlation between the value of the underlying instrument and the derivative, which may prevent the Fund from achieving its investment objective.
ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
The Distributor is Foreside Fund Services, LLC.
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SOURCE Hedgeye Asset Management
FAQ
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