Friday, 25 July 2014
Last updated 3 hours 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."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…