Monetary Matters with Jack Farley Bringing Long/Short Hedge Fund Strategies to ETFs | David Orr (Bonus Episode)
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Oct 16, 2025 In this engaging discussion, David Orr, a long/short equity manager and head of the Militia Long/Short Equity ETF, shares insights into his unique decision to launch an ETF while successfully running a hedge fund. He tackles challenges like liquidity management, compliance differences between hedge funds and ETFs, and investor adoption hurdles. David also emphasizes the advantages of tax efficiency and scalability with ETFs, while revealing plans for expansion and the importance of transparency in building investor trust. A must-listen for finance aficionados!
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Investors Buy For Different Reasons
- Investors buy the ETF for varied reasons: Japanese exposure, lower volatility, efficiency, or alpha.
- Different allocations reflect diverse user needs rather than a single product promise.
Use Transparency To Your Advantage
- Don't fear transparency; public holdings can reinforce positions as others copy them and push prices favorably.
- Use disclosure timing and trading tactics to avoid being front-run and to mislead systematic copy strategies when needed.
ETF Compliance Narrows Public Communication
- ETF compliance constrains public communications more than Orr's hedge fund approach, limiting responsiveness to investor queries.
- He navigates this by posting an approved pinned note explaining why he can't reply directly about the ETF.