The International Securities Exchange (ISE) announced today that it has partnered with Horizon Kinetics LLC (Horizon Kinetics), an independently-owned and operated investment boutique, to launch the Horizon Kinetics ISE Wealth Index (Ticker: RCH).
The Horizon Kinetics ISE Wealth Index includes companies whose senior management has demonstrated a track record of skill and specific industry knowledge that has translated into high levels of long-term shareholder value creation. In many cases, these individuals have also used their respective companies as the primary means for accumulating substantial personal wealth, such as with index components Berkshire Hathaway (Ticker: BRK-B) and Microsoft (Ticker: MSFT). Due to this vested interest factor, these management teams often prioritize the creation of long-term shareholder value and, as a result, outperform the markets. This unique predictive index variable - rather than traditional index classifications - has been demonstrated to provide meaningful excess returns over time versus the S&P 500.
“The innovative Horizon Kinetics ISE Wealth Index is the first benchmark designed to identify insider wealth and distinctive management style as defining predictive index variables across highly varied industries,” said Kris Monaco, ISE’s Head of New Product Development. “We are excited to be partnering with Horizon Kinetics to launch this index, which gives investors broad exposure to high-performance companies possessing these unique characteristics.”
“We believe that the Horizon Kinetics ISE Wealth Index provides exposure to companies whose managementsare better aligned with shareholders. Investing alongside such companies has proven to be an excellent way to generate long-term returns,” said Doug Kramer, Chief Executive Officer of Horizon Kinetics LLC.
For more information on ISE indexes, visit www.ise.com/index.
