It appears that Ken Fisher’s investment firm pulled roughly $3.5 billion out of three ETNs in which it’s the largest holder.
About $1.4 billion was stripped from Credit Suisse FI Large Cap Growth Enhanced ETN (FLGE), and two other Fisher dominated leveraged exchange-traded notes--Goldman Sachs Finance Large Cap Growth Index-Linked ETN (FRLG) and UBS FI Enhanced Large Cap Growth ETN (FBGX)--saw record outflows as well last week. There’s no way of knowing who exactly withdrew the funds, but Fisher’s firm is the only with stakes that size in those funds.
It’s expected that the money was pulled as part of general portfolio management with a chance it was to deal with client outflows or to lessen the leverage of their clients’ portfolios.
Last year, Fisher Investments watched as clients pulled out about $4 billion from the company after the firm’s founder made vulgar comments during a conference. Fisher maintained that his words had been taken out of context, but that didn’t stop the likes of Goldman Sachs Group from withdrawing funds.
FLGE is currently down 1.4 percent for the year. It has gained 85 percent since March 23 after getting pummeled during the coronavirus sell-off.
FRLG had $1.3 billion withdrawn on Thursday, while FBGX saw over $800 million pulled last week.
