Gabriel Hammond is back with Emles Advisors

Lightbulb moment

ETF industry veteran Gabriel Hammond, founder of Alerian and SteelPath Capital Management, is back with the launch of new asset management firm Emles Advisors, working with former Alerian CFO, Dave Saxena.

Hammond has spent roughly 20 years in the asset management industry in indexes, mutual funds and ETFs, having raised over USD15 billion with the Master Limited Partnerships (MLP) index series and launched the first MLP mutual fund and ETF.

He and Saxena have been working on launching their new firm since the sale of Alerian in 2018.

“We were unsatisfied with the investment options that were available to us and really surprised that we couldn’t find the products that met our needs,” he says. “It didn’t matter whether you were a USD100 million client portfolio or just had your retirement pot, it was the same problem, so we decided to build another asset manager offering for investors.”

The firm is launching with four ETFs, three in the equity space and one in fixed income.  

The Emles Made in America ETF (AMER) seeks to capitalise on the secular shift of deglobalisation by investing in US manufacturing companies that generate substantial revenue in the United States. The Emles Federal Contractors ETF (FEDX) provides exposure to stocks whose revenues are mostly derived from federal contracts with the US government.

The Emles @Home ETF (LIV) is designed to provide thematic exposure to companies that may stand to benefit from the accelerating shift towards more time spent at home, and the the Emles Real Estate Credit ETF (REC) delivers access to bonds issued by real estate companies.

Hammond is particularly excited by this product, which he says fills a gap in the market as it can offer the income and diversification benefits of the real estate asset class, and will have a close to 4 per cent coupon, or 3 per cent yield.

Back in the ETF industry, Hammond finds it more competitive than it was when he launched Alerian, with larger scale players and lots of value for investors.

“It’s more challenging but there are so many opportunities because one of the things that we focused on doing is putting in the investment behind these new products with infrastructure that will last for the next 60 years.”

He confirms that his new firm will look at active ETFs. “We have a couple of ideas,” he says. “Every time we look to launch a product we think ‘what is the best way to do this?’ but generally one of the things I prefer is the passive side as transparency is so important for me.”

The sales efforts will be focused on institutional and larger registered investment advisers, he says. “We are really excited to put together a group of professionals and to get these products out the door and deliver performance to investors.”

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