AdvisorShares

AdvisorShares Investments is a U.S. investment-management firm based in Bethesda, Maryland, whose principal business is developing and sponsoring actively managed exchange-traded funds (ETFs) through the AdvisorShares Trust. Rather than building its offering solely around proprietary index-tracking products, the firm has historically worked with outside portfolio managers, financial advisers, research firms, and specialist asset managers to translate their investment strategies into exchange-traded fund structures. The company’s origins date to 2006, when Noah Hamman, Jacob Griffith, and Joseph Barrato—former Rydex employees—founded Arrow Funds. Hamman established AdvisorShares later that year while he was still associated with Arrow. The relationship subsequently became the subject of litigation and arbitration concerning fiduciary duties, intellectual property, business opportunities, and alleged diversion of contracts. Hamman was dismissed by Arrow in 2007. In 2008, Fund.com acquired a 60% interest in AdvisorShares for an initial payment of $275,000, according to the company’s Wikipedia account and the cited historical materials. AdvisorShares launched its first ETF in 2009. Its early products helped illustrate the brand’s operating model: an investment specialist supplied the strategy and portfolio-management expertise, while AdvisorShares provided the ETF platform, distribution, operational infrastructure, and investor education. Early funds included the DENT Tactical ETF, the Mars Hill Global Relative Value ETF, the Cambria Global Tactical ETF, the Peritus High Yield ETF, and the TrimTabs Float Shrink ETF. These products covered macroeconomic allocation, long/short investing, high-yield bonds, equity buybacks, and other strategies that were not necessarily available through conventional passive ETFs. The brand also pursued thematic and socially oriented products. In 2012 it launched the Global Echo ETF in partnership with Philippe Cousteau Jr. and the Global Echo Foundation. The fund linked a sustainable-investing mandate with a stated contribution from part of its expense fees to the nonprofit foundation. Other products were subsequently renamed, transferred, reorganized, or assigned new advisers as market conditions, assets, and strategic relationships changed. Examples include the transition of the TrimTabs Float Shrink ETF into products managed by Wilshire Associates, DoubleLine Equity, and later a strategy associated with Minyi Chen; the transition of the Peritus High Yield ETF to another trust; and the reorganization of the Pacific Asset floating-rate fund. AdvisorShares’ business proposition is therefore based on access and packaging: it offers investors exchange-traded access to actively managed approaches while offering investment professionals a regulated fund vehicle and distribution channel. The firm also provides educational material intended to help advisers and investors understand active ETFs, their underlying strategies, risks, costs, and portfolio-management methods. Available historical material reports 24 active ETFs and approximately $1.83 billion in assets under management in 2014, and 22 ETFs with approximately $1.01 billion in assets under management in August 2023; these figures are time-specific and should not be treated as current totals without updated fund-level verification.

AdvisorShares emerged from the U.S. investment-management and ETF sectors during the first decade of the 2000s. In February 2006, former Rydex employees Noah Hamman, Jacob Griffith, and Joseph Barrato established Arrow Funds. Hamman created AdvisorShares in August 2006 while serving as Arrow’s chief executive. Arrow later alleged that the new venture competed with Arrow and diverted opportunities, assets, contracts, and intellectual property. Hamman was dismissed by Arrow on November 29, 2007. The conflict produced several legal proceedings. Arrow began arbitration in November 2008, arguing that AdvisorShares had improperly used Arrow-related intellectual property and business planning. AdvisorShares also faced an SEC exemptive-relief challenge from Arrow in connection with its effort to operate within the regulatory framework required for its ETF business. The challenge was denied in July 2009, and the arbitration was settled in March 2010. Separately, Hamman petitioned in 2008 to dissolve Arrow Investment Advisors, alleging managerial and operational misconduct. A Delaware court dismissed that petition with prejudice in April 2009, finding that the allegations lacked adequate factual support and that fiduciary claims were subject to arbitration under the company agreement. Fund.com acquired a 60% interest in AdvisorShares on October 31, 2008, for an initial reported payment of $275,000. AdvisorShares then developed a platform centered on active ETFs. Its first product, the DENT Tactical ETF, began trading in September 2009. The product was managed by HS Dent Investment Management and represented the model in which an outside specialist supplied the investment strategy while AdvisorShares sponsored and distributed the ETF. During 2010–2012, the firm broadened its range. The Mars Hill Global Relative Value ETF became an early actively managed long/short ETF. The Cambria Global Tactical ETF used a trend-based model and invested across asset classes through underlying ETFs. AdvisorShares also partnered with Peritus Asset Management on what was described as the first actively managed high-yield bond ETF, and with TrimTabs Investment Research on a fund focused on companies with share-float and buyback characteristics. In 2012 it launched the Global Echo ETF, linking sustainable investing with a charitable contribution arrangement involving the Global Echo Foundation. The company’s product history has included substantial strategy and manager turnover. DENT closed in 2012. The Mars Hill fund was renamed and assigned to Accuvest Global Advisors in 2011 before closing in 2015. The Cambria relationship ended in 2014, after which Morgan Creek Capital Management became the fund’s sub-adviser; GTAA closed in 2017. GIVE closed in 2017. HYLD was approved for transfer to another ETF trust in 2017–2018. TTFS underwent repeated manager and strategy changes: TrimTabs was replaced by Wilshire in 2016; DoubleLine Equity became the manager in 2018 and the fund was renamed AdvisorShares DoubleLine Value Equity ETF; in 2022 the fund was renamed AdvisorShares Insider Advantage ETF and its strategy returned toward float-shrink and buyback investing. By 2014, available historical reporting described AdvisorShares as having 24 active ETFs and approximately $1.83 billion under management. A later snapshot from August 2023 reported 22 ETFs, an average expense ratio of 1.27%, and approximately $1.01 billion in assets under management. AdvisorShares continues to position itself around actively managed ETFs, specialist investment advisers, and educational support for financial professionals and investors. Exact current assets, product count, management roster, and ownership should be verified from current regulatory filings and the firm’s website.

1. 2023Reported 22-ETF platform

   An August 2023 snapshot reported 22 ETFs and approximately $1.01 billion in assets under management.

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2. 2014Reported scale of 24 active ETFs

   Historical reporting described 24 active ETFs and approximately $1.83 billion in assets under management.

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3. 2012Global Echo ETF launched

   AdvisorShares launched GIVE, a sustainable-investing ETF associated with Philippe Cousteau Jr. and the Global Echo Foundation.

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4. 2010Mars Hill long/short ETF launched

   The Mars Hill Global Relative Value ETF began trading as an actively managed long/short ETF.

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5. 2009First ETF began trading

   The DENT Tactical ETF started trading on the New York Stock Exchange on September 15.

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6. 2008Fund.com acquired a majority stake

   Fund.com purchased a 60% interest in AdvisorShares on October 31.

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7. 2007Hamman dismissed by Arrow

   Arrow’s management committee dismissed Noah Hamman on November 29 amid allegations concerning his competing AdvisorShares activities.

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8. 2006AdvisorShares established

   Noah Hamman established AdvisorShares in August, several months after co-founding Arrow Funds with Jacob Griffith and Joseph Barrato.

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A platform for actively managed ETFs, using specialist advisers and portfolio managers to offer differentiated strategies in an exchange-traded format.

• DENT Tactical ETF (DENT)Tactical allocation ETF2009

  AdvisorShares’ first identified ETF began trading in September 2009. It was actively managed by HS Dent Investment Management, the research and forecasting firm associated with Harry S. Dent Jr. The fund applied a tactical, macroeconomic approach rather than simply replicating an index. It closed in August 2012.

• Mars Hill Global Relative Value ETF (GRV), later AdvisorShares Accuvest Global Long Short ETF (AGLS)Long/short global equity ETF2010

  Launched in July 2010 and managed initially by Mars Hill Partners, this fund was described as the industry’s first actively managed long/short ETF. After assets declined substantially, Accuvest Global Advisors assumed management in December 2011 and the fund changed its name and ticker to AGLS. The successor fund closed in August 2015.

• Cambria Global Tactical ETF (GTAA)Global tactical allocation ETF2010

  GTAA began trading in October 2010 and was managed by Cambria Investment Management. Its trend-based model allocated across asset classes through underlying ETFs. Mebane Faber and Eric Richardson were identified as co-portfolio managers. After Cambria and AdvisorShares separated in 2014, Morgan Creek Capital Management became sub-adviser; GTAA closed in May 2017.

• AdvisorShares Peritus High Yield ETF (HYLD)High-yield bond ETF2010

  Launched in December 2010 with Peritus Asset Management, HYLD was described as the first actively managed high-yield bond ETF. Peritus chief investment officer Tim Gramatovich managed the fund with Ron Heller. The fund later underwent an approved transfer from AdvisorShares Trust to another ETF trust, with the transition announced in 2017 and 2018.

• AdvisorShares TrimTabs Float Shrink ETF (TTFS) and successor strategiesEquity buyback and float-shrink ETF2011

  Launched in October 2011 with TrimTabs Investment Research, TTFS sought companies whose liquidity and fundamental characteristics were associated with stronger long-term performance, including share-float reduction and buybacks. AdvisorShares replaced TrimTabs with Wilshire in 2016, later appointed DoubleLine Equity and renamed the fund DBLV, and in 2022 changed it again to AdvisorShares Insider Advantage ETF (SURE), restoring a strategy focused on insider activity, float shrink, and buybacks.

• AdvisorShares Global Echo ETF (GIVE)Sustainable-investing ETF2012

  GIVE launched in May 2012 with a sustainable-investing focus and an association with Philippe Cousteau Jr. and the Global Echo Foundation. The fund stated that a portion of its expense fees would support the foundation’s work involving social issues, conservation, and social entrepreneurship. It closed in May 2017.

• AdvisorShares Pacific Asset Enhanced Floating Rate ETF, later Pacific Global Senior Loan ETF (FLRT)Floating-rate and senior-loan ETF2015

  The fund began in February 2015 as an AdvisorShares product called the Pacific Asset Enhanced Floating Rate ETF. It was reorganized in December 2019 as the Pacific Global Senior Loan ETF, illustrating the brand’s history of changing fund structures and names as management arrangements evolved.

• 2012Global Echo sustainable-investing and charitable partnership

  United States

  AdvisorShares promoted the Global Echo ETF as a sustainable-investing product associated with Philippe Cousteau Jr. and the Global Echo Foundation. The fund stated that a portion of its expense fees would be donated to the foundation.

  Outcome. GIVE closed on May 17, 2017.

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• 2022Change DBLV to Insider Advantage ETFStrategy

  AdvisorShares again changed the management and positioning of the fund formerly associated with TTFS and DBLV.

  What changed. The fund became AdvisorShares Insider Advantage ETF (SURE), with Minyi Chen returning as portfolio strategist and the strategy moving back toward float shrink and stock buybacks.

  Aftermath. The change continued AdvisorShares’ pattern of adapting ETF mandates and adviser relationships over a product’s life.

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• 2018Reposition TTFS as a DoubleLine value ETFStrategy

  After assets in the renamed fund had declined, AdvisorShares changed the manager and investment approach.

  What changed. DoubleLine Equity LP became manager, and the fund was renamed AdvisorShares DoubleLine Value Equity ETF (DBLV).

  Aftermath. The fund was later changed again in 2022 to AdvisorShares Insider Advantage ETF (SURE).

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• 2016Replace TrimTabs as TTFS managerStrategy

  AdvisorShares removed TrimTabs Asset Management from management of the TrimTabs Float Shrink ETF after the fund had accumulated substantial assets and received favorable historical performance coverage.

  What changed. Wilshire Associates was appointed manager and the fund was renamed the Wilshire Buyback ETF, while the TTFS ticker was retained.

  Aftermath. TrimTabs chief executive Charles Biderman publicly criticized the decision and questioned whether the new manager could reproduce TrimTabs’ selection methodology.

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• 2012Esposito Securities confidentiality lawsuitControversy

  Esposito Securities sued AdvisorShares, alleging that confidential information covered by a mutual nondisclosure agreement had been shared with Esposito clients by AdvisorShares officer Dan Ahrens.

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• 2008Arrow Funds arbitration and fiduciary-duty disputeControversy

  Arrow alleged that Noah Hamman created AdvisorShares while leading Arrow and diverted opportunities, assets, contracts, and intellectual property. Arbitration began in 2008, and the parties agreed to settle in March 2010.

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• 2008Petition to dissolve Arrow Investment AdvisorsControversy

  Hamman petitioned for dissolution of Arrow Investment Advisors, alleging managerial and regulatory misconduct. A Delaware court dismissed the petition with prejudice in April 2009 for inadequate factual support and directed fiduciary claims to arbitration.

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• 2017HYLD transition to another ETF trust

  The AdvisorShares board approved the transfer of the Peritus High Yield ETF from AdvisorShares Trust to Amplify ETF Trust; the transfer was later announced in connection with Exchange Traded Concepts and Eve Capital.

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• 2016AdvisorShares changed management of the TrimTabs Float Shrink ETF

  AdvisorShares removed TrimTabs as manager of TTFS, appointed Wilshire Associates, and renamed the fund the Wilshire Buyback ETF while retaining its ticker.

  Leadership change
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• 2009AdvisorShares launched its first actively managed ETF

  The DENT Tactical ETF began trading on the New York Stock Exchange, becoming the first product identified with AdvisorShares Investments.

  Product launch
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• 2008Fund.com acquired a 60% stake in AdvisorShares

  Fund.com purchased a majority stake in AdvisorShares for an initial payment reported as $275,000.

  M&A
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1. AdvisorShares
2. AdvisorShares Investments