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
- Greek Prime Minister Fails To Get Enough Votes To Elect President, Has Less Support Than Expected | ZeroHedge
- For Now, I Must Assume This Is A Lie | iBankCoin.com
- Wall Street Harbinger Jefferies Reports Q4 Bloodbath: 73% Plunge In Fixed Income Revenue, 45% Drop In Equities | ZeroHedge
- "If They Only Knew How Little You Know" | ZeroHedge
- Broken VIX Means "Markets Getting Scared", Group One Says | ZeroHedge
- Abort? EURUSD In Catastrophe Mode | iBankCoin.com
- Acquired StockTrader.com – Moving in the Spring! | FundMyMutualFund
The most relevant financial news and articles from the Internets
- American Apparel Fires Dov Charney | Business Insider
- Companies In These Countries Have The Most Exposure To Russia | Business Insider
- Which Is America's Best City? | BusinessWeek
- Cats Are Ruthless Killers | Business Insider
- 25 Ways to Make LinkedIn Work for You | BusinessWeek
- Mysterious Startup Magic Leap Recruited A Legendary Writer... | Business Insider
- 15 Overlay Maps That Will Change The Way You See The World... | Business Insider