Corgi's new fund holds more in SpaceX than in OpenAI and Anthropic

Corgi's new fund held more in SpaceX than in OpenAI and Anthropic. On Tuesday, October 6, SpaceX was 22.69% of the Corgi MANGOS ETF MN, a fund that holds six companies. SpaceX has traded on Nasdaq since Friday, June 12. OpenAI and Anthropic were 10.37% together.

Under the fund's own limit, the two private names cannot pass 15% when it buys. Meta, Nvidia, Alphabet and SpaceX were about 86%, and each of the four was about twice that private pair.

"For years, exposure to OpenAI and Anthropic has been reserved for venture investors and insiders," said Jeff Weniger, chief investment strategist at Corgi Invest.

MN does not track an index. A manager picks the mix. MANGOS is the initials of Meta, Anthropic, Nvidia, Google, OpenAI and SpaceX. It began trading on the Cboe exchange on Friday, October 2. Corgi announced the launch on Monday, after that first session.

The private exposure is a contract, not a share. Corgi said OpenAI and Anthropic would be reached through cash-settled swaps, which pay the change in value in cash.

As of Tuesday, each public company was split between the stock and a swap, with the stock a little larger. The private names were swaps only. Cash was 3.44%.

Corgi has said the split lets the fund keep its target weight in each public company and still meet a tax rule that limits how much can sit in one company's stock.

The private swaps are priced off perpetual futures, contracts with no set end date. Corgi says that price can differ from a private share, a funding round or a listing, and that financing charges reduce the return. The fund depends on its counterparty for that price and for payment. Prices can push the pair above the 15% cap after the fund buys.

The fee is 0.20%. Corgi reported $68.4 million in the fund as of Tuesday.

Yorkville already lists a MANGOS Plus index fund, —FRUT, which holds the six names plus a wider set of chip and hardware companies, including AMD, Marvell, Intel, Micron and Dell. It listed on Monday, August 31, charges 0.50%, and held $2.3 million as of Wednesday, October 7. Its OpenAI and Anthropic swaps were 2.3% combined.

MN charges less, and the assets Corgi reported are much larger. Its private swaps were a larger share of the fund, and the portfolio stops at the six names.

What a 0.45% high-yield fee has gathered

The Nomura High Yield Total Return ETF —HFIX aims for income and some rise in price from high-yield bonds, lower-rated company debt that pays more because it is riskier. Inception was Monday, October 5. Nomura announced the fund on Tuesday, and it is listed on NYSE Arca.

The October 1 prospectus sets the fee at 0.45%, with no waiver in the fee table. At least 80% of the fund must sit in those bonds. A manager may put up to 20% in other securities, including loans and higher-rated bonds.

The prospectus says the fund has no performance history. It points to accounts at Nomura Corporate Research and Asset Management, the firm that picks the bonds, going back to October 1, 1991, and says that record is not this fund's.

—HFIX holds $25 million. iShares' active high-yield fund, CBRHY, charges the same 0.45% and held $138 million as of Tuesday.

Index funds at a fraction of that fee hold far more. State Street's index fund of US high-yield bonds, ASPHY, charges 0.05% and held $11.8 billion as of Wednesday. iShares' broad fund of US dollar high-yield bonds, AUSHY, charges 0.08% and held $25.4 billion as of Tuesday.

iShares' other fund of these bonds, BHYG, charges 0.49%, more than —HFIX, and held $18.2 billion as of Wednesday.

A financing spread sits on top of Simplify's 0.50%

The Simplify Brookwood Global Macro ETF —GMAC can buy assets or position for a fall, across commodities, companies and other markets. Brookwood Investment Group, the sub-adviser, picks the positions. The fund started on Monday, October 5, when Simplify reported $2.5 million in it, at a fee of 0.50%. Simplify announced the listing on Tuesday. It trades on NYSE Arca.

Simplify says that exposure will come mainly from ETFs, including ETFs it runs, and from swaps.

"Global macro investing is about having the flexibility to go where the opportunities exist," said David Berns, Simplify's co-founder and chief investment officer.

Holdings reported as of Wednesday were about 98% Treasury bills. Swaps on funds from iShares, Amplify, Global X and First Trust, among others, came to about half the fund, led by gold, silver, silver miners, copper miners, uranium and copper. Each swap is financed at SOFR plus a spread. SOFR is a short-term interest-rate benchmark. The silver swap is 65 basis points over it, gold is 85, and most of the rest are 93. A basis point is 0.01 percentage points.

Virtus's global macro fund, CASGM, charges 0.86% and held about $10 million as of Wednesday. Unlimited's fund, CHFGM, which buys other funds and can position for a fall in them, charges 1% and held $153 million as of Wednesday. Simplify's managed-futures fund, BCTA, which trades futures, charges 0.75% and held $1.3 billion as of Wednesday.

The 0.50% is the lowest stated fee of that group. The swap spreads are a financing cost the fee line does not show.