Investment advisor IronHorse Capital Management has transferred its Conductor Global Equity Value mutual fund into its first exchange traded fund under the Conductor Funds brand. Trading on the New York Stock Exchange Arca, the Conductor Global Equity Value ETF (NYSE Arca: CGV) is an actively managed ETF focused on the purchase of global equities using multiple value factors across a series of metrics.
Most of the equities in CGV tend to fall into the small- and mid-cap categories. IronHorse launched the mutual fund in December 2013.
“We’re really honing in on stocks around the world that are trading at significant multiple discount,” said Chad Cunningham, CIO of IronHorse Capital Management and manager of the ETF.
Cunningham told VettaFi that, through the screening process, he wants to make sure that the stocks they’re buying aren’t value traps and have staying power. “We want to make sure the names we’re buying are viable in the intermediate to long-term,” he said. “We don’t want a bunch of companies that are on the precipice of going out of business.”
Therefore, while the stocks they select are trading at a discount, their leverage ratios “typically fall well below the market median.”
All equities purchased outside the U.S. are purchased in the foreign country, on the local exchange in the local currency. No currency hedging is employed by the strategy.
“International stocks are really cheap versus U.S. stocks, and small- and midcap is extremely cheap,” Cunningham added. “We’ve got a real opportunity to really provide some value to investors out there.”