"Cloning" simply means creating investing strategies that intelligently apply the publicly disclosed stock ideas of top hedge fund and institutional money managers.
It's no secret that many of the best investment ideas come from hedge funds and institutional portfolios. Unfortunately most investors can’t conveniently access these investments. AlphaClone's mission is to empower investors by giving them efficient access to the investment ideas of established institutional investors and hedge funds. Our research and portfolio construction approach, called “cloning”, allows any investor to gain exposure to the alpha potential reflected in hedge fund and institutional manager public disclosures. As the AlphaClone name indicates, we seek to clone alpha through our proprietary "cloning" process and make it available to all types of investors.
AlphaClone's real-world experience in managing disclosure-based investment strategies for our investment account clients, as well as independent academic research, validates cloning as an investment discipline. A manager's quarterly disclosures can be valuable due to several factors including examining holding periods and the manager's performance correlation to their disclosed long positions. However, like any investment approach, cloning requires an intelligent, thoughtful, disciplined methodology.
AlphaClone's experience in developing and implementing real-world investment strategies based on cloning, coupled with our proprietary technology, allows us to continuously optimize our methodology. Our experience points to the importance of three key factors when cloning hedge funds: manager selection, risk management and disciple. We incorporate these core principles within our investment strategies.
Discover how our convenient and low cost solutions for individual investors and financial professionals can help achieve your investment objectives.
Clones can be created by following the stock picks of a single manager or a custom group of managers. We currently track over 280 managers in our database.
Our cloning strategies include:
- Top Holdings: invest in largest positions
- Best Ideas: invest in largest NEW positions
- Popularity: invest in positions held by the largest number of managers
Here are a couple of examples:
- A clone that holds Seth Klarman's ten largest holdings each quarter beat the
S&P 500 by 223% since 2000 (as of 4/30/2010).
- A clone that holds the ten most popular stocks amongst our Value Masters
Fund Group beat the S&P 500 by 287% since 2000 (as of 4/30/2010).