Back in August we wrote the first in a series of articles that compared the actual performance of a hedge fund with one of its clones. The article in August focused on Maverick Capital and compared the performance of the actual fund to the performance of AlphaClone's Maverick Capital Top 10 Holdings clone. The analysis went as far back as July 2002 and showed the clone returning 6.87% annualized vs. 6.79% for the actual fund (7/02 to 8/09)
This morning, Dealbreaker.com, one of our favorite blogs, published Maverick's latest investor letter. The letter summarizes the ten year performance to 12/31/2009 of Maverick's main fund, Maverick Fund, and several of its variants including; Maverick Neutral and Maverick Long. We thought it a great opportunity to update our comparison using a longer time horizon - ten years. This time we take Maverick's Top 20 Holding clone and compare the long only, 50% hedged and 100% hedged versions of the clone with the actual performance of Maverick's corresponding variant. I think Meb Faber said it best when he sent me the numbers in an email this morning.... "BAM"!!
