Ten Cap has listed its first active ETF, Tcap (ASX: TCAP), on the Australian Securities Exchange (ASX) today.

Tcap is an Australia only long-short active extension strategy. Its underlying strategy is based on Ten Cap’s long-standing investment offering, Alpha Plus.

Until now the strategy has only been available to institutional and advised investors, and Ten Cap co-founder and lead portfolio manager, Jun Bei Liu, says the firm wanted to expand the strategy’s availability into the broader retail market.

“This is one of the longest running and most consistently performing long short equity only funds in Australia, and we wanted to provide all types of investors with access to this strategy,” says Ms Liu.

Tcap aims for “equity-like” returns but with less market volatility given the strategy's ability to hold both long and short positions. It offers clients core exposure to the ASX200 Index but with the additional option of holding up to 10 per cent outside the benchmark in small and mid-cap stocks. It is style agnostic and utilises a proprietary sector-based hedging strategy.

The underlying strategy, the Alpha Plus fund, has returned 12.45 per cent a year since inception, outperforming the ASX200 index by 2.87 per cent.

Since taking over as manager of the fund in 2019, Ms Liu has delivered a return of 12.9 per cent a year compared to the ASX200 of 9.9 per cent - an annualised (net) outperformance of 298bps.