(Bloomberg) — Former Bridgewater Associates LP government Bob Elliott is increasing his agency’s ETF lineup with quite a lot of hedge fund-like methods.

Elliott’s Limitless, which focuses on various investments, is planning to launch eight exchange-traded funds that goal to duplicate the returns of kinds corresponding to fairness long-short, international macro and low beta, in response to regulatory filings. The purpose is to supply particular person buyers entry to extra subtle methods at a decrease price relative to charges charged by non-public funds.

The chief, who spent over a decade at Ray Dalio’s funding agency, final 12 months launched the almost $40 million Limitless HFND Multi-Technique Return Tracker ETF (ticker HFND)  — which focuses on numerous kinds utilizing machine studying.

Elliott declined to touch upon the brand new funds, citing a regulatory quiet interval.

Every fund will make investments primarily in ETFs and futures contracts. Limitless will decide the returns of the assorted hedge fund sectors, and use an algorithm that makes use of historic returns and positioning information to construct ETF portfolios that finest match every sector’s returns, in response to the submitting. 

Shana Sissel, president of Banrion Capital Administration, stated she’s inspired that Elliott’s fund lineup is bringing retail buyers methods that may present higher diversification.

“I’m very inspired at his preliminary success,” she stated, “However I’m involved as a result of it is a area the place retail buyers efficiency chase, and rapidly issues can flip.”

Certainly, the brand new funds come throughout a 12 months when many hedge funds have underperformed inventory and bond markets. 

Hedge-fund veteran George Noble is shuttering his long-short fairness ETF that has plunged greater than 50% since its September debut. The Noble Absolute Return ETF (ticker NOPE) held positions in opposition to numerous tech shares which have posted staggering advances in 2023.

Meantime, HFND is up solely 0.2% this 12 months, in contrast with a 16% advance within the S&P 500.

“Whereas the underlying know-how has labored largely per our expectations, hedge funds haven’t carried out in addition to index funds during the last 9 months as a result of they’ve been positioned extra conservatively,” stated Elliott. “In consequence, advisors who see the promise of the fund over time have been slower to make allocations till there’s extra proof of differentiated efficiency.”