A hedge fundster's $2-billion-AUM, rules-based investing boutique in Pennsylvania is entering the ETF space by transforming a 13-year-old offering.

Last Wednesday (February 12), Victor Haghani, founder and chief investment officer of Elm Wealth, and James White, CEO, unveiled the launch of the Elm Market Navigator ETF (ELM on the NYSE Arca). Philadelphia-based Elm Partners Management LLC (dba Elm Wealth) serves as investment advisor to the new fund, which comes from the Elm Partners Portfolio LLC, an unregistered private investment fund (i.e. hedge fund) that debuted on December 31, 2011.

Thanks to the transformation of the predecessor hedge fund, ELM debuted last week with $362 million in AUM, and that, according to the Elm Wealth team, makes it "the most well-capitalized" ETF launch of 2025 so far. By Friday (February 14), the fund had $368.2 million in AUM. Its expense ratio is 24 basis points (which bakes in a 2bps fee waiver promised through February 10, 2026).

White and Haghani continue to PM the hedge-fund-turned-ETF. White had been a PM on the predecessor fund since December 2017, and Haghani had PMed it since inception. ELM is powered by Dynamic Index Investing, Elm Wealth's "proprietary, rules-based asset allocation methodology." The fund is an actively managed fund of funds that can invest in ETFs and traditional mutual funds, both active and passive.

That Elm Wealth methodology comes from the team's belief that "a sound investing approach should be eyes-open and responsive to varying risks and return," explains Haghani, who was a co-founder of the late Long-Term Capital Management.

"By converting our private fund to an ETF, we're offering all investors a low-cost and tax-efficient way to systematically adjust their portfolio to market risks, interest rates, and evolving return opportunities," Haghani states.

White emphasizes the ETF's transparency and rules-based approach.

"We believe the comfort of knowing your portfolio responds to changing markets allows people to comfortably run a greater average exposure to equities than if they have to commit to a static, fixed asset allocation," White states.

ELM is a series of the Series Portfolios Trust. The new ETF's other service providers include: Cohen & Company, Ltd. as independent accounting firm; Kirkland & Ellis LLP as counsel; ACA Foreside's Quasar Distributors, LLC as distributor; U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as administrator, dividend disbursing agent, fund accountant, and transfer agent; and U.S. Bank, N.A. as custodian and securities lending agent. 

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