NightShares
ETFs capturing overnight equity market performance anomalies.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | N/A | - | |
| Total Funding | 000k | ||
| USD | 2023 |
|---|---|
| Revenues | 0000 |
| EBITDA | 0000 |
| Profit | 0000 |
| EV | 0000 |
| EV / revenue | 00.0x |
| EV / EBITDA | 00.0x |
| R&D budget | 0000 |
Source: Dealroom estimates
Related Content
NightShares is an asset manager providing exchange-traded funds (ETFs) designed to capture the "Night Effect," a market phenomenon where overnight markets have historically shown strong risk-adjusted outperformance compared to daytime trading sessions. The firm was founded by ETF industry veterans, with Bruce Lavine serving as CEO. Lavine has an extensive background in the ETF sector, having been a founder of iShares, where he worked on product development and later ran the European business, followed by 16 years as President, COO, and a board member at WisdomTree.
The company's business model is centered on creating and managing ETFs that give investors access to this specific market anomaly, which was previously difficult for non-institutional investors to access. The strategy involves systematically buying index futures at the market close and selling them at the next morning's open to isolate the performance of the overnight session. Revenue is generated from the expense ratios charged on its ETF products. The funds are actively managed and co-managed by AlphaTrAI Funds, Inc. and Exchange Traded Concepts, LLC.
NightShares launched its first two funds, the NightShares 500 ETF (NSPY) and the NightShares 2000 ETF (NIWM), in June 2022. These were followed by the NightShares 500 1x/1.5x ETF (NSPL) in October 2022, which offers leveraged exposure to the night session while maintaining 1x exposure during the day. However, due to what the CEO described as "colossally unlucky" timing with market dynamics shifting to favor daytime performance post-launch, the NSPY and NIWM funds failed to gain significant assets and were liquidated in August 2023. The firm continues to operate the NSPL fund and planned to redirect its strategy, including launching a new fund incorporating artificial intelligence.
Keywords: Night Effect, overnight trading, ETF provider, asset management, exchange-traded funds, Bruce Lavine, market anomaly, investment strategy, index futures, risk-adjusted returns, large-cap equities, small-cap equities, leveraged ETF, AlphaTrAI Funds, financial products