Why You Should Be Following the Top Hedge Funds

Post updated:  A reader (HT: RK) emailed in suggesting that the two funds (ICMYX and ETGLX) are not correctly characterized by Morningstar since they both hold lots of cash and bonds – which even further validates my point – the Tiger Cubs portfolio would be the #1 performing mutual fund YTD.  So, my apologies – there are zero diversified equity funds up on the year. 


Did you know that out of the 9000 stock mutual funds in Morningstar‘s database there are only two  ZERO funds up on the year? 

The Tiger Cubs portfolio I mentioned at the end of 2008 is up 1.8% this year.  That would be the 2nd best performing stock fund this year – out of 9000 funds.  This fund is beating the market by 15% in 2009, and has averaged 15% outperformance a year since 2000.

For those new to my blog World Beta, this portfolio was generated using AlphaClone.  You can take the tour here.  The strategy simply takes the top 10 most popular stocks held by 20 hedge fund progeny of Julian Robertson’s Tiger Management.  The free Tiger Clone portfolio is here.

The current portfolio is:

Qualcomm (QCOM)

Mastercard (MA)

Google (GOOG)

Transdigm (TDG)

Visa (V)

America Movil (AMX)

America Tower (AMT)

Philip Morris (PM)

Priceline (PCLN)

Covanta (CVA)

Disclosure: Long GOOG, TDG, AMX, PCLN, and MA.