AlphaClone

January 2012 Monthly Performance

2012-02-03T11:46:44-08:00

The markets began the year with their best start since 1989 fueled by relatively positive economic news in the US and China and the belief that Europe's continued economic crisis is now at least well understood and perhaps even contained. The S&P 500 increased by 4.5% in January while the Russell 2000 gained 7.1%.

Our dyanamically hedged strategies entered the year while maintaining their "risk off" postures throughtout January. With the broader market indices closing above their 200 day moving averages at the end of the month, all dynamically hedged strategies reverted to their long "risk on" postures beginning February 1st. Our long only strategies all performed in line or better than their respective long only benchmarks.

Highlights

AlphaClone Select Long/Short Composite | +1.6% MTD vs. +3.2% for the DJCS Core Equity Long/Short Index

AlphaClone Momentum Long/Short Composite | +3.6% MTD vs. +3.2% for the DJCS Core Equity Long/Short Index

AlphaClone International Long/Short Composite | +2% MTD vs. +1.8% for the DJCS Core Emerging Market Index

ETF Ideas Long Composite | +9.2% MTD vs. 7.1% for the MSCI World Index

Value Masters Long Composite | +4.7% MTD vs. 4.5% for the S&P 500 Index (including dividends)

Activist Masters Long Composite | +4.5% MTD vs. 4.5% for the S&P 500 Index (including dividends)

Click the link below to download performance results for our core investment strategies as of the end of January 2012. Our investment strategies are available to individual investors through our investment accounts service. Our online application makes it easy to sign up.

IMPORTANT DISCLOSURES FOR ACTUAL PERFORMANCE RESULTS
Actual performance figures are unaudited estimates generated by AlphaClone, LLC, and are subject to modification. Performance is in U.S. dollars, includes the reinvestment of dividends and is net of trading expenses and management fees (1.5% per year combined). Past performance is not a guarantee of future returns. AlphaClone Core Strategies seek capital appreciation as their investment objective. This communication does not constitute an offer or a solicitation to invest with AlphaClone, LLC. Index comparison returns are shown with dividends reinvested were available.

AlphaClone Featured on Absolute Return + Alpha

2012-01-11T09:43:21-08:00

Absolute Return + Alpha staff writer Lawrence Delevinge published an article this morning entitled "Do Hedge Fund Copycats Work?". The artilcle features AlphaClone and discusses our first full year of performance results as an investment advisor. Here's the full text of the article:

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Do hedge fund copycats work?

January 11, 2012 By Lawrence Delevingne

Assessing AlphaClone’s first year running virtual funds of hedge funds.

AlphaClone launched in 2008 with an ambitious idea: allow everyday investors to copy hedge fund returns without the high fees. By piggybacking on the publically disclosed stock investments of Baupost’s Seth Klarman, SAC Capital Advisor’s Steve Cohen, Tiger Global’s Chase Coleman and nearly 300 hedge funds and other money managers, the San Francisco firm sought to give everyone access to the masters.

Besides research tools, the firm offers a variety of separate account strategies, charging flat management fees of 1% to 1.5% of assets. Those accounts allow clients to invest alongside managers practicing particular equity strategies, such as one, Value Masters, that derives its holdings from 15 undisclosed value fund portfolios.

In its first full year of trading, AlphaClone’s accounts produced net returns that came close to those of the managers they tracked, even if it was a year in which hedge funds produced their worst showing since 2008.

AlphaClone Select, an account which selects its holdings from the managers for which it has historically proved the most profitable to copy, was down 6.8% in 2011, compared to a 7.4% loss for the Dow Jones Credit Suisse Core Equity Long/Short Index—the firm’s preferred benchmark. The HedgeFund Intelligence Composite Index of hedge fund returns fell 1.94% in 2011 (data is still being updated as funds report). The Value Masters portfolio fell 2.7% in 2011, compared with a 2.3% gain for the S&P 500 (with dividends). Activist Masters, which picks its stocks from 13 activist funds, gained 7.4% for the year. The HedgeFund Intelligence Event Driven Index fell 4.50% in 2011.

"In a year that was one of the most difficult on record for hedge funds, AlphaClone's performance throughout the year has demonstrated the efficacy of using hedge fund public disclosures to derive new investment strategies that can outperform traditional hedge funds without the high fees, lockups and lack of transparency,” wrote AlphaClone founder and chief executive Maz Jadallah in an email to AR.

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Our Convictions Tested: 2011 Year End Review

2012-01-05T14:38:47-08:00

The year put our convictions to the test on both the long and short sides. How did we do? Download our year end review and perofrmance report.

Alternative Alpha: Better, Cheaper, More Liquid Access to Hedge Fund Returns

2011-12-31T07:11:17-08:00

View more documents from AlphaClone .

2011 Hedge Fund Performance by Sector

2011-12-30T09:36:48-08:00

Below are one and three year total returns for the Top 10 Popularity clones from our Sector Picks fund groups which allow any investor to clone hedge fund holdings by sector. Allocating equally to each clone portfolio beginning three years ago and holding through yesterdays close would have returned 71% vs. 46% for a portfolio that allocated equally to each corresponding S&P500 sector. So much for the "crowded trade" myth.