Invest like a Hedge Fund with a New ETF
For just $24 a share you to can buy into the AlphaClone Alternative Alpha ETF (NYSE:ALFA) and reap the benefits of investing like a hedge fund. The catch is the trades are made after the big boys have published their filings, so in essence you are chasing the fumes of big money.
However traders may warm up to the 'Hedge Fund Alternative ETF' if it can demonstrate results. The fund launched last week, its down almost 4% including today's 1% fall. The fund tracks the top performing hedge funds and makes its stocks picks based from 13F filings from the best hedge fund managers. ALFA even goes short provided the S&P 500 closes at less than its 200-day moving average after 30 days. The fund moves from 100% long to 50% long and 50% short. The short bet will be made with buying into an inverse fund, like the ProShares Short S&P500 (ETF) (NYSE:SH). Read all about it at their website AlphaClone Funds.
Their method has been backtested and they say the ETF has an annualized return of 17% for its strategy when compared from 2011 through 2011. Time will tell if it really works now that we can watch the ticker 'ALFA' that trades on the NYSE. The fund is making its bets from 13F filings which means the actual trades could months old by the time ALFA buys in.
MASTERY Bottom line:
Whatever the case, its an tempting investing opportunity for those of us without millions to invest in hedge funds. Time will tell if this automated and runner-up method will hit a 17% return in 2012. If it does, Mastery will line up their dollars in 2013 and click buy on ALFA without hesitation.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Pity the Sub-Genius | ZeroHedge
- There Goes The Shopping Spree: Nor'easter May Hit East Coast For Thanksgiving | ZeroHedge
- Global Economies Will Dictate Rate Hike Timing | Financial Sense
- Obama's Path To 'Amnesty' (In 1 Cartoon) | ZeroHedge
- Summing It All Up In 1 Surreal Chart | ZeroHedge
- Veteran S&P Futures Trader: "I Am 100% Confident That Central Banks Are Buying S&P Futures" | ZeroHedge
- On Obama and the Nature of Failed Presidencies | Financial Sense
The most relevant financial news and articles from the Internets
- Georgia's Pankisi Gorge: the making of a jihadist | Business Insider
- F1 champion Hamilton ready for new title fight | Business Insider
- Ladies And Gentlemen, We Have Finally Learned The Right Way To Say 'Krugman'! | Business Insider
- Microsoft: Compared To Apple And Yahoo, We Are NOT Overpaying Our New CEO (MSFT) | Business Insider
- FARC to free Colombian general, others next week:... | Business Insider
- Vargas retains WBA super lightweight crown in Macau | Business Insider
- 'The Hunger Games: Mockingjay - Part I' Has The Biggest... | Business Insider