About AlphaClone
The AlphaClone Difference
AlphaClone is a web-delivered investment research service that lets any investor intelligently apply the stock ideas of top hedge fund and institutional money managers. AlphaClone is the first professional equities research platform that backtests investing in the stock ideas of top managers at the time their stock ideas become public – a process called “cloning.”
Independent academic studies have shown the potential for cloning to generate significant excess returns. Cloning also helps professional and self-directed investors validate existing investment ideas and find new ones. The fund managers in AlphaClone’s database are amongst the best stock pickers in the world, a fact reflected in the performance of our clones even during the recent financial markets crisis. For example:
- A clone that holds Warren Buffett’s ten largest holdings each quarter beat the S&P 500 by 9.1% annualized since 2000 (as of 1/15/2010).
- A clone that holds the ten most popular stocks amongst our Tiger Cubs Fund Group beat the S&P 500 by 10% annualized since 2000 (as of 1/15/2010).
AlphaClone allows you to clone over 280 top money managers or any combination using several cloning strategies. Users can also:
- View clone performance annually or across several date spans
- Compare performance over time against several indexes
- View current and past holdings for each clone
- View recent trade activity for each clone
- Download a spreadsheet for any clone to view monthly return streams
- Hedge a clone portfolio and view back-tested performance
- Customize clones by changing the number of holdings and/or rebalance method
- Select which sectors and/or cap groups to include/exclude in the cloning process
- Clone your own fund groups
All back-test results account for the time-delay in public disclosures and avoid survivorship bias by including both currently active and inactive securities in the test results.
Technology
AlphaClone was built using Ruby on Rails. The service was designed, developed and is hosted by the awesome people at Planet Argon.
Our Company
AlphaClone was founded by Mazin Jadallah and Mebane Faber. Mazin is a long time active investor and Mebane is a licensed professional money manager. They conceived of the AlphaClone solution in 2007 after seeing first-hand how effective the “follow the smart money” investment approach can be yet how difficult it was for professional and self-directed investors to discover and analyze the behavior of top professional investors. They created AlphaClone to answer two basic questions:
- What are the top investors doing?
- How can I benefit from that knowledge?
Mazin is a 12 year veteran of technology driven media businesses and has held several senior analyst and corporate development roles at companies such as Time Warner Inc. and Open TV Inc. He holds an MBA in Finance and Management from Rollins College and a BS in Industrial Engineering from Texas Tech University.
Mebane Faber is co-Founder of AlphaClone and has long been a vocal advocate of the “follow the smart money” investment approach. Mebane is a registered investment advisor and portfolio manager, has Series 3, 7 and 66 licenses, is a Chartered Alternative Investment Analyst (CAIA) and is a Chartered Market Technician (CMT). He is author of The Ivy Portfolio – How to Invest Like Top Endowment Funds where he dedicates a chapter to “cloning” as an investment approach. He is also author of A Quantitative Approach to Tactical Asset Allocation and is an active blogger.