AlphaClone is probably the best research platform out there for investors looking to recreate, or “clone”, portfolios developed by leading hedge fund and mutual fund managers.
AlphaClone is Mebane Faber’s online foray that implements much of the research he recently published in The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets. It’s a good read and AlphaClone has Faber’s extremely-well researched homework embedded in its pixels.
AlphaClone has now taken its platform one-step further and partnered with Folio Investing to make it even easier for investors to implement the piggyback approach by allowing:
investors to buy an entire portfolio of securities at once with one transaction, and have any dollar amount automatically distributed at the proper percentage weights across all of the stocks in the portfolio.
You can see the Folios for portfolios like the Tiger Cubs and Berkshire Hathaway here.
According to AlphaClone:
Marketfolly’s prefered clone from its new group is the Top 3 Holdings clone which is up 15% year-to-date and has returned 20% annualized since 2000 (yes 20%).(5/29/09).
Not too shabby. AlphaClone is moving further into this space and will be launching more clone groups developed by stock bloggers. This is another important way to bring transparency to the financial blogosphere and bring quantification to some of the leading voices out there.
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- Our review of AlphaClone’s launch
- More about piggyback investing