Some interesting news out of AlphaClone.
Press release here.
Over 70% of AlphaClone’s Smart Money Simulations Outperformed the S&P 500 Index
SAN FRANCISCO, CA–(Marketwire – January 19, 2010) – AlphaClone LLC, today announced 2009 performance results for its simulated hedge fund clone portfolios. For the year ending December 31, 2009, over 70% of AlphaClone’s 3,100 clone portfolios beat the S&P 500 market index, with over half outperforming by 10 percentage points or more.
Leveraging the publicly disclosed stock picks of the world’s top hedge fund managers, AlphaClone created a series of “clones,” passive investment strategies that seek to systematically capture alpha typically only available to high-net worth investors.
These cloning strategies performed particularly well in 2009 compared to the US market, as represented by the S&P 500. The following table lists the year’s best-performing “single fund clones” based on a Top 20 Holdings strategy. Topping the list was the Eagle Value Partners clone, which garnered an impressive total return of 220.8% for the year compared to 26.5% for the S&P 500 Index.
AlphaClone — 2009’s Best-Performing Single Fund Clones — Top 20 Holdings Strategy
Total Rank Fund Return 1 Eagle Value Partners (Witmer) 220.8% 2 Pabrai Mohnish 171.0% 3 Silver Point Capital 167.3% 4 Tracer Capital Management 125.9% 5 Pershing Square Capital Management 123.7% 6 Elliott Management 122.9% 7 Pamet Capital Management 121.7% 8 Greywolf Capital Management 120.9% 9 Artis Capital Management 118.2% 10 Kayne Anderson Capital Advisors 116.7%
AlphaClone follows the investments of over 280 firms, including legendary fund managers such as Warren Buffett, Seth Klarman, John Paulson, David Einhorn, David Tepper, and George Soros.
To create more diversified strategies, AlphaClone also tracks groups of fund managers and aggregates their stock ideas into investable clones. For example, AlphaClone makes it possible to follow the most popular investments of twenty “Tiger Cub” fund managers, protégés of legendary Tiger Management investor Julian Robertson. AlphaClone clients that invested in the Tiger Cubs Top 10 Popularity Clone enjoyed returns of over 59% in 2009.
“We’re thrilled with the outstanding performance of our clone portfolios since we launched a year ago,” said Mazin Jadallah, founder and CEO of AlphaClone. “Today’s investors are savvy but have very limited access to the world’s top hedge funds. With AlphaClone, investors can extract value from the collective intelligence of the world’s best stock pickers and put that value to work in their own investment accounts.”
AlphaClone’s subscription-based research solution is a fraction of the cost of traditional hedge funds and offers better transparency, liquidity, and tax management. The research service includes an intuitive online strategy simulation tool that enables investors to explore and customize smart money portfolios that fit their needs. Investors can access current stock picks and backtest portfolios with ten years of historical market data. For more information visit http://www.alphaclone.com.
About AlphaClone LLC
AlphaClone is the first professional grade web-based equity research service that lets investors find, backtest and track the stock ideas of top money managers. Through a process called “cloning,” AlphaClone simulates investing in smart money stock ideas at the time they are made public. Easy-to-use, powerful and flexible, AlphaClone is designed for both individual and professional investors who want to know what the smart money is doing and more importantly how they can benefit from that knowledge. Based in San Francisco, AlphaClone was founded by Mazin Jadallah, Mebane Faber, and Jason Jones.