SAN FRANCISCO, Nov 02, 2015 (BUSINESS WIRE) — AlphaClone, Inc. (“AlphaClone”), a pioneer in building accessible, alpha-seeking investment strategies for long-term investors, today announced the launch of the AlphaClone International Downside Hedged Index. The index seeks to give investors the potential to outperform broader international markets by accessing the investment ideas of the world’s most established hedge funds, while simultaneously hedging against protracted market downturns.
The index follows the same proprietary Clone Score methodology used by AlphaClone’s flagship AlphaClone Hedge Fund Downside Hedged Index, which has approximately $170 million in assets currently tracking the index, and has returned an average of 14.35 percent per year versus 12.40 percent for the S&P 500 Total Return Index over the three-year period ending 9/30/2015.
Earlier in the year, the firm filed with the Securities and Exchange Commission to register four new exchange-traded funds (ETFs). The ETF that will track the AlphaClone International Downside Hedged Index is anticipated to launch before the end of 2015.
“Pursuing the potential for alpha is even more important today for long-term investors, given the anemic growth forecasted for equities and bonds over the next several years,” says Maz Jadallah, CEO of AlphaClone. “We’re delighted to introduce an international version of our index, further expanding the number of alpha-seeking index strategies available to global investors.”
The AlphaClone International Downside Hedged Index comprises at least 40 high conviction American Depository Receipt (ADR) holdings selected from the regulatory disclosures of the world’s most established institutional investors. The firm uses its proprietary Clone Score methodology to continuously score managers based on the efficacy of following their disclosures, then aggregates high conviction ADR holdings from managers with the highest score. Holdings are weighted based on the number of holders in each. The index also employs the firm’s innovative dynamic hedge mechanism that allows the index to vary from long only to market hedged when the S&P 500 closes below its 200-day simple moving average at any month’s end.
“Having seen success with our methodology inside separately managed accounts over the past five years, we’re excited to further expand access to our innovative investment methodology and are committed to helping long-term investors succeed,” Jadallah continues.
For more information about AlphaClone, please visit www.alphaclone.com. To see how the AlphaClone International Downside Hedged Index is calculated click here.
About AlphaClone, Inc.
AlphaClone, Inc. is a San Francisco-based registered investment advisor and equity research firm that is a pioneer in building accessible alpha-seeking investment strategies for long-term investors. AlphaClone’s investment products and solutions are derived from institutional investor public disclosures and give investors direct access to the investment ideas of the world’s most established hedge funds. The firm’s proven, intelligent, risk-managed portfolio construction approach seeks to provide liquid, transparent, low-fee strategies that can give investors exposure to the alpha potential inherent in hedge fund investments. AlphaClone’s investment research and strategies are available to investors through managed accounts and exchange-traded funds.
AlphaClone® is a registered trademark of AlphaClone, Inc. All investment strategies have the potential for profit or loss. Historical performance is not a guarantee of future returns. Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies, nor shall it be construed to be the provision of investment advice. Investments involve risk and unless otherwise stated, are not insured or guaranteed. The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. It is not possible to invest directly in an index.