Page 31 - e_tr08_2012

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31
08/2012
www.tradersonline-mag.com
TRADERS´
TOOLS
strategy of the best 15 value
investors, of the most successful
top-university endowment
funds or the best stock ideas
of nearly 200 hedge funds
in your own portfolio – this
and much more is very easily
convertible. Flexibility has no
limits: You can define how many
positions of the various funds
you clone into your portfolio and
even the rebalancing method
is controllable. For example,
we choose the group “Value
Masters” as we are interested
in building a clone of the value
investors portfolio. We see
an overview that offers all the
important information: Market
capitalisation of the funds you
want to clone, the turnover ratio
as well as the performance.
In a next step the user can
define if he only wants to add the
biggest positions of the funds
group, only new positions or only
the most popular stocks among
the 15 top value investors. We
decide to take the first strategy.
Finally you can determine the
number of securities – this is
good, because you do not want
to add too many securities
to your portfolio. To reduce
the number of shares to a
manageable amount we choose
the minimum number of shares
per fund, which means 15 stocks
all together. Now it gets exciting:
How did the clone portfolio
perform compared to the whole
market? We chose the S&P 500
as benchmark.
After a few seconds you see
the performance chart as shown
on the side. The data history of
ten years shows that the value
clone portfolio outperformed the
whole market clearly. The data
you can see below shows the
annualised yield, the volatility,
the Sharpe Ratio as well as the
maximum drawdown. You can
see the list of all shares further
below. If you want to work with
this information in Excel you can
do so with the export function
– everything is very intuitive
and comfortable. If you want to
follow this clone strategy in the
future you can file the clone in
the “dashboard” area that you
can use as watchlist in order to
follow dozens of strategies or
proprietary clones and compare
them – welcome to paradise.
The Leaderboard – the
Treasure Trove for Investors
Investors that do not want to use
a predefined group can build
their own combination of different
funds – as a fund of funds that you
can determine by your own rules.
You can choose the single funds
with the help of the “Leaderboard”
very easily: The investor can set
his criteria such as yield, volatility
or drawdown and choose between
hundreds of funds and he can get
a quick overview of the different
strategies. In addition to the list of
funds you can also take a look at
the rankings that show the best
sectors and the shares that were
sold or bought the most. The
rankings are sorted quarterly and
you can also take a look at the
past and see which themes are in
or out. If you click on one share
you get an interesting overview
that offers important information
about the activity of the funds
concerning this title: Which fund
is invested in the particular share
and how high is the percentage
on the portfolio? How “popular”
has the share been over time and
how many funds have this share in
their portfolio? Figure 2 shows that
all this information is displayed
clearly. Therefore AlphaClone is an
additional tool to choose shares.
Conclusion: Top-Tool for
Investors in Shares and Funds
AlphaClone offers an excellent
solution for investors who want to
copy, thus clone, the strategies
of the Smart Money easily. The
investor has the possibility to
build his own fund of funds and
he can analyse the performance
over the last ten years or he can
simply analyse existing positions
of US-shares in the portfolio
from the point of view of the
professional managers. The
intuitive and clear implementation
of this idea confirms that the
developers of AlphaClone have
produced a very good and
practicable tool.
F2)
Sentiment of the Apple-Share
AlphaClone offers the possibility to analyse individual shares. For
example you can analyse in which funds the apple-share is weighted
the highest. You can also analyse the “popularity” of the share among
the professional portfolio managers and therefore you get some kind
of sentiment.
Source: www.alphaclone.com