Tag Archives: alphaclone

Piggybacking investing gurus just got easier

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.

money-laundry-with-water-reflection-effectAlphaClone 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.

AlphaClone also launched a clone for a portfolio designed by the popular investment blog, MarketFolly as well.

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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alphaCLONE launches and takes piggyback investing to the next level

Why create new, unfounded and unproven investment strategies when you can piggyback on top of the world’s best investors instead?  Lots of investors are using the ideas of guru investors like Ken Heebner and Warren Buffett to mimic their investment strategies or build an all-star portfolio based on the best ideas of leading hedge fund and mutual fund managers.  Check out our easy how-to guide for piggyback investing.

tour-ss-full-leaderboardA highly-anticipated website launched today named alphaCLONE.  Mebane Faber, a frequent contributor to SeekingAlpha and fan of endowment investing (Check out his recently published book entitled The Ivy Portfolio: How to Manage Your Portfolio Like the Harvard and Yale Endowments) is one of the co-founders.

According to their launch materials: We built AlphaClone to serve as an intelligent market guide to self-directed investors – both individual and professional.  Given the market turmoil over the last year, there has never beena better time for a service like AlphaClone for investors like you to intelligently research and track how the world’s top investors are deploying their capital in US equity markets.

So, how does it work?

Users can search using a variety of criteria through the portfolios of specific fund managers from over 230 funds tracked by alphaCLONE. Once a user finds a portfolio he/she is interested in (say, Warren Buffet, Carl Icahn, etc.), users are given a variety of tools to monitor performance of current and past holdings, changes to the portfolio (recent buys and sells).  Users essentially “clone” portfolios, or copy them to be able to monitor performance.

Users can not only track individual funds but also pre-defined groups of funds and track the best picks using some type of collective intelligence. One such clone is the Tiger Cubs clone (see it here) that tracks the top picks of hedge fund managers who where former proteges of Julian Robertson, one of the most successful hedge fund managers in history and founder of Tiger Fund Management.

tour-ss-full-berkshirePros of alphaCLONE

  • lots and lots of information on hedge fund portfolios
  • powerful search functionality
  • free version (there is a premium one) is pretty robust
  • predefined groups of funds is a great for idea generation and tracking strategies
  • displays ins-and-outs of positions in the fund and changes in relative weightings
  • great display of things like performance of best stock pick, annualized data, long vs hedged holdings

Cons of alphaCLONE

  • site is very busy and it’s not easy to understand everything that’s going on
  • premium pricing at about $100/month is steep but priced for high end investors
  • OK, I didn’t spend SO long on the site but found it very distracting
  • next step would be to create a real trading platform to implement the strategies developed on the site or plug into existing online trading to for trade execution (like SmartStops has done with Ameritrade).

Piggybacking 2.0

We’ve discussed using StockPickr.com, the first site to make piggybacking easier and more accessible for most of us.  alphaCLONE is StockPickr on steroids.  While both sites suffer from being very busy, alphaCLONE provides better search functionality, broader monitoring of professional portfolios, and tools to help investors both create and track portfolios piggybacking on top of the world’s best investors.