If you're looking to get into fundamentally based ETFs, give Akros Capital [profile] a call.

The New York-based RIA and manager of the Quaker Akros Absolute Return fund is planning to merge with MarketGrader, a research firm and indexer based in Miami, and is looking for a strategic partner to launch an ETF line.

Akros founder Brady Lipp told MFWire that the merger with MarketGrader is still pending. But once the deal is done, he'll be looking for a strategic partner with a strong distribution channel.

"The game plan is to create some ETFs, and we're looking for a major strategic partner that has some distribution capabilities," said Lipp. "We've been having discussions with a handful, but it's still wide open in terms of who we might end up with."

Lipp founded Akros (whose name comes from the Classical Greek word for "peak") in 2003, and the firm has approximately $14 million under management, according to the SEC advisor database.

MarketGrader, founded in 1999, has launched 14 different indices, including the Barron's 400 index. Lipp said that following the merger, he hopes to launch an ETF based on the Barron's 400 index in early 2013.

"The idea is to use MarketGrader's research and indices to produce a fundamentally based index product," he said.

In addition, Lipp said that Akros is working to readopt the Quaker Akros Total Return fund from Quaker. The fund, currently rated "neutral" by Morningstar, was given a five-star review by the firm after its excellent performance in the 2008 financial crisis.

And further down the road, Akros may be looking to hire an exec. Yesterday, Wasatch Advisors announced that it had hired away Akros CFO and COO Steve Rung to lead its sales and communication team. Lipp said that once the deal with MarketGrader is finalized, he'll probably look to replace Rung. 

Edited by: Chris Cumming


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE