On June 17, 2025, Rainwater Equity launched their first fund called, well, Rainwater Equity ETF.  The actively managed ETF will pursue long-term capital appreciation by investing in a portfolio of “recurring revenue businesses led by exceptional management teams for the long run.” As an example, almost 10% of the fund is invested in the Canadian firm, Constellation Software, Inc. Constellation acquires and manages business software firms which tend to have a recurring revenue (monthly subscription) model and are “sticky” by nature (changing software, especially at the enterprise level, is hugely painful so companies try to avoid it). They believe such businesses offer more durable growth, fewer surprises, and greater long-term wealth creation potential.

Rainwater is led by, and the fund is managed by, Joseph R. Shaposhnik, former portfolio manager of the TCW Compounders ETF. TCW New America Premier Equities Fund (TGUSX) was merged into the TCW Compounders ETF on May 3, 2024. For nearly a decade, the “TCW New America Premier Equities Fund/Compounders ETF (GRW) was ranked the top-performing fund out of 343 peers in its U.S. Large Cap Core Equity category by Nasdaq eVestment.” The performance claim seems quite plausible, but we don’t have the data at hand to confirm it. Before joining TCW in 2011, he was an Equity Research Associate at Fidelity.

Bill Miller, formerly chairman and CIO of Legg Mason, was one of the fund’s first investors.

RW has a 1.25% expense ratio and will invest in 20 to 30 stocks, intended to be held for longer periods of time.

The fund’s website is understandably sparse, but has a “sign up for updates” pop-up that might be useful to folks who’ve followed Mr. Shaposhnik’s work.