Great article by Miles Weiss at Bloomberg on Ralph Whitworth and his activist fund, Relational Investors. The article cites AlphaClone for the three year performance of the fund's Top 5 Holdings clone. The clone lost nearly 11% annualized over the period vs. an annualized loss of 9.1 percent for the S&P500 over the same period. Despite struggling over the recent term, the article cites a knowledgeable source that claims the fund has outperformed the S&P500 by 9% annualized since it was founded in 1996. To compare that performance with that of its clone - we looked at how the fund's Top 5 Holdings clone has performed since 2000. You might be surprised to find out that the fund's clone which invests quarterly at the time that the fund's investments are made public, has outperformed the S&P500TR index by 10.6% annualized (see graph).
