NEWS
With Intelligence: Bancreek discusses its roots and its actively managed ETFs
BY NICK PECK, WITH INTELLIGENCE
Bancreek Capital Advisors is eyeing a build-out of its ETF roster after releasing its inaugural pair of funds over the past year.
Andrew Skatoff, founder, CEO and CIO of the $43m Santa Monica, California-based boutique, told With Intelligence the firm feels it has developed a process over the past few years that will allow it to build ETFs within any asset class.
Former family office investor Skatoff is joined by chief analytics officer Eric Pachman, chief data scientist Anton Yen, and CFO and CCO Kevin Polli, who all have known one another since early in their childhoods; the firm’s name came from the elementary school Skatoff and Pachman attended together.
“We were all kind of doing very different things for a very long time, and then it just coincidentally made sense to build this together given our skill sets," Skatoff said.
The firm itself launched in 2021 and more recently teamed up with white label provider Exchange Traded Concepts to launch the $41m Bancreek US Large Cap ETF(BCUS) in December 2023 and the active $2m Bancreek International Large Cap ETF(BCIL) in March 2024.
Both actively managed funds use the same framework to find large-cap companies and the firm says have structurally advantaged business models.
YTD, BCUS has posted a trailing return of 17.4%, placing it in the top quartile of the large blend category, and in the past three months, BCIL has posted a trailing return of 3.9%, placing it in the top quartile of the foreign large blend category.
Additionally, Morningstar analysts mention these funds have several positive features, including low ESG risks, which could appeal to sustainability-focused investors.
As the firm looks to develop more products, the firm focuses on areas the team themselves would be interested in investing in.
“We’re constantly testing and seeing if we can introduce new ideas and concepts into the engine that add value to our investors," Skatoff shared.
As a new manager, the firm is concentrating on brand recognition among investors, chiefly by attending as many conferences as possible and targeting the intermediary channel, specifically RIAs and family offices.
Bancreek is also eyeing pensions, foundations and endowments as that channel becomes more open to actively managed ETFs.
In terms of growing its team, the firm plans to keep its core four together as well as its partnership with ETC, but may look to bring in a CMO in the next three to five years as the business begins to scale.
The performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. For the most current month-end performance data, please call 855-973-7880. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern time and do not represent the returns an investor would receive if shares were traded at other times. Shares may trade at a premium or discount to the Fund’s net asset value (“NAV”). Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Investors buy and sell shares on a secondary market.
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