The case for alternative strategy funds

The case for alternative strategy funds
News from Marketwatch:

By Thomas Meyer

”The essence of portfolio management is the management of RISKS, not the management of RETURNS. Well-managed portfolios start with this precept.” ~ Ben Graham

As we begin a new year, it would be wise to heed the words of Ben Graham – the mentor to Warren Buffett. A prudent formula to adhere to this philosophy would be to incorporate Alternative Strategy mutual funds into your asset allocation mix of stocks, ETF or long-only mutual fund holdings.

This philosophy should help to lower the volatility of your equity portfolio, especially in a market that has been consistently 75% correlated in the past few years. While we all know that the only guarantee in the stock market is risk and that the market always moves in two directions, why don’t most individual investors have strategies that will take advantage of this fact?

We know, because we are all human and “fear is temporary and greed is permanent” – one of our favorite sayings. So we will ask you, in this environment are you willing to lose less or take more risk to make more? Do you know what the beta is of your portfolio? Or better yet what is the risk adjusted rate of return ?

This is a fair question when you consider the demographi…………… continues on Marketwatch

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AlphaClone Announces 2011 Performance Results for Its Disclosure-Based Hedge Fund Replication Strategies
News from Yahoo Finance:

SAN FRANCISCO, CA–(Marketwire -01/11/12)- AlphaClone LLC, the leader in disclosure-based hedge fund replication, today announced the year end performance results for its series of investable Core Strategies. Completing its first full year as a registered investment advisor, the company’s results demonstrate the efficacy of using hedge fund public disclosures to derive investable equity strategies which are designed to replicate the alpha from top hedge funds without the high fees, lockups and lack of transparency that normally come with hedge fund investing.

The company’s mid and full year actual net of fees results demonstrate the resilience of the company’s investment approach in different market environments compared to benchmark indexes:

 
AlphaClone Core Strategies YTD YTD
to 6/30/11 to 12/31/11
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Activist Masters Long Only Composite 12.6% 7.40%

Value Masters Long Only Composite............... continues on Yahoo Finance

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