Tuesday, 21 October 2014
Last updated 8 min ago
Nov 14 2013 | 10:53am ET
It may not make you a billionaire but an index launched on the NYSE on Wednesday claims it will let you invest like one.
The iBillionaire index, brainchild of Kinetik co-founder Raul Moreno and Dineromail co-founder Alejandro Estrada, tracks the 30 large-cap, S&P-listed equities most popular with billionaire investors like Warren Buffett, Dan Loeb, David Tepper, John Paulson, Carl Icahn and David Einhorn based on their 13F filings.
According to iBillionaire, the index "provides investors an efficient and effective way to follow the smart money. In essence, the index works as though one gathered a group of billionaires and asked them to come to a consensus as to which S&P 500 stocks are the best bets."
The company is also laying the groundwork for an exchange-traded fund.
Maz Jadallah, whose AlphaClone runs just such an ETF, told FINalternatives he was not surprised by the recent proliferation of 13F-based investment products:
"Investors like Buffett and Malone have created a lot of value for their investors and themselves. The success of the iB index will depend on the index's ability to select billionaires that continue to create value in the future via their public investments.”
But, not surprisingly, Jadallah likes his own manager selection methodology best:
“Rather than simply picking random or well-known managers, AlphaClone’s proprietary Clone Score methodology enables our strategies to invest in the top positions of managers who provide persistent returns over a long period."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...