Goose Hollow Capital Management to Liquidate Goose Hollow Enhanced Equity ETF
The Board of Trustees of the Collaborative Investment Series Trust has approved the liquidation of the Goose Hollow Enhanced Equity ETF (Cboe BZX: GHEE). The decision follows a recommendation from the Fund’s investment adviser, Goose Hollow Capital Management LLC, and reflects the Board’s view that this course best serves shareholders. The Board and adviser will coordinate the wind-down to make the transition as orderly as possible.
Key Dates and What Happens Next
The liquidation payment to shareholders is expected to occur soon after the liquidation date. Following September 11, 2024, the Fund will no longer accept creation orders, and trading on the Cboe BZX Exchange will conclude on September 27, 2024. During this period, the Fund will stop pursuing its stated investment objective and instead focus on winding down operations in preparation for the final distribution.
Shareholders may continue to sell their shares on the Exchange through the market close on September 27. After that date, the shares will be delisted and will no longer trade. Investors who still hold shares after trading ends won’t be stuck with illiquid securities; they’ll receive cash equal to the net asset value of their holdings on or about the liquidation date. Any capital gains and dividends associated with the Fund at that time will be included in the final cash distribution.
Understanding Potential Capital Gains
Liquidations can trigger tax consequences. Shareholders generally will recognize a capital gain or loss based on the difference between the amount they receive and their adjusted tax basis in the shares. Because tax situations differ, investors should consult their own tax advisors to understand how the liquidation, and any distributions tied to it, may affect them.
Who Is Goose Hollow Capital Management?
Goose Hollow Capital Management LLC is a global macro investment manager based just outside the New York area. Led by Krishna Kumar, the team brings deep global macro expertise with a particular emphasis on derivatives and the use of advanced technology throughout the investment process.
The firm focuses on building durable relationships with clients, communities, and service providers. Its mission centers on creating long-term value for stakeholders through disciplined, thoughtful investment strategies.
Risks Involved with Investing
All investments carry risk, including the possible loss of principal. The information in this release is provided for informational purposes only and shouldn’t be viewed as investment advice or legal counsel. Before investing—or deciding whether to hold or sell—investors should carefully consider the Fund’s risks, investment objectives, and expenses, as well as their own financial circumstances.
Diversification doesn’t eliminate losses or guarantee profits. Exchange-Traded Funds (ETFs) trade on an exchange like stocks and can experience price swings. Unlike traditional mutual funds, ETF shares aren’t redeemable directly with the Fund; they must be bought and sold on the secondary market. As a result, market prices may trade above (a premium) or below (a discount) the ETF’s net asset value (NAV).
Frequently Asked Questions
What’s driving the decision to liquidate the ETF?
The Board determined that liquidation is in the best interests of shareholders after evaluating the Fund and receiving a recommendation from the investment adviser, Goose Hollow Capital Management LLC.
When will shareholders receive their liquidation proceeds?
Shareholders should expect to receive their cash distribution on or about the Liquidation Date, which is currently anticipated for late September. The payment will follow shortly after the Fund completes its wind-down.
What if I don’t sell my shares before trading ends?
If you hold your shares past the market close on September 27, you won’t need to take further action. You’ll receive cash equal to the net asset value of your shares on or about the liquidation date, with any applicable capital gains and dividends included.
What should I think about before deciding to sell or hold?
Consider the Fund’s risks, your investment objectives, any costs, and your personal tax situation. A conversation with your financial or tax advisor can help you weigh timing, taxes, and market conditions.
Who leads Goose Hollow Capital Management?
Krishna Kumar leads Goose Hollow Capital Management. He and the team focus on global macro investing, with experience in derivatives and a commitment to building long-term client partnerships.
