Other People's Money with Max Wiethe Bringing Long/Short Hedge Fund Strategies to ETFs | David Orr (Bonus Episode)
Oct 16, 2025
David Orr, a seasoned long/short equity investor and manager of the Militia Long/Short Equity ETF, dives into the dynamics of blending hedge fund strategies with ETFs. He shares insights on why he launched an ETF alongside a successful hedge fund, discussing liquidity management and compliance challenges. David reveals how ETFs can attract diverse investors and the importance of transparency. He also discusses regulatory hurdles and marketing tactics, while emphasizing the nuanced costs of trading in these structures. A rich conversation for finance enthusiasts!
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ETF Objectives Attract Distinct Investor Needs
- ETF prospectuses require stated objectives and more public clarity than private funds.
- Different investors buy ETFs for varied reasons: Japan exposure, alpha, lower volatility, or margin/retirement account efficiency.
Use Transparency To Your Advantage
- Don't fear daily transparency; copied trades can reinforce positions but might create short-term liquidity vacuums.
- Use trade timing and misleading execution tactics to avoid being front-run by public holders.
ETF Compliance Narrows Public Messaging
- ETF compliance constrains public communications more than Orr's privately run hedge fund.
- He accepts the restriction by limiting ETF-related commentary while still discussing companies and hedge fund views.