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
- A Tale Of Two Job Markets (Or Why The Elites Couldn't See A Trump Win Coming) | ZeroHedge
- Obama Still Can't Process Hillary's Loss; Blames "Fox News In Every Bar And Restaurant" | ZeroHedge
- Nasdaq Tumbles Into Red Post-Trump As Bond Market Crashes | ZeroHedge
- CAT Halted After 15% Post-Trump Spike: Warns Estimates "Too Optimistic", Announces Cost Cuts, Layoffs | ZeroHedge
- Wells Fargo General Counsel Postpones Retirement "In Light Of Recent Events" | ZeroHedge
- Michigan Rejects Trump's Objection - Recounts Are Cleared To Start Next Week | ZeroHedge
- 7 Reasons that the Corporate Media Is Pro-War | ZeroHedge
The most relevant financial news and articles from the Internets
- Here's who's being kept in solitary confinement | Business Insider
- These are the top 20 party cities in the US and Canada | Business Insider
- More than 2,000 US military veterans to form a human... | Business Insider
- Strong earthquake rattles southern Peru | Business Insider
- Starbucks CEO Howard Schultz is stepping down ($SBUX) | Business Insider
- Russia has just given up on trying to launch strikes from its... | Business Insider
- Trump's education secretary is a big advocate for charter schools, but... | Business Insider