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From the Opalesque team:
AlphaClone reported yesterday that more than 70% of its 3,100 simulated hedge fund clone portfolios had beaten the S&P 500 market index in 2009. With an annual return of +26.5% in 2009, the S&P Index recovered half the losses of the disastrous previous year (-37.0%).
Leveraging the publicly disclosed stock picks of the world's top hedge fund managers, AlphaClone LLC created a series of "clones" a year ago, which are passive investment strategies that seek to systematically capture alpha typically only available to high-net worth investors. AlphaClone follows the investments of more than 280 firms, including Warren Buffett, Seth Klarman, John Paulson, David Einhorn, David Tepper and George Soros (see table listing 2009's best-performing "single fund clones" based on a Top 20 Holdings strategy here).
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 20 "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 (see our related Nov-09 Opalesque Exclusive: Julian Robertson reve...................... To view our full article Click here
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