Market Folly - Latest Comments in Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

marketfolly — Wed, 04 Nov 2009 12:03:04 -0000

Yep, correct.

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

Ben — Wed, 04 Nov 2009 10:19:07 -0000

Ah ok, I think I misunderstood. So 50% hedge = 75% long 25% short right? Whereas 100% = market neutral? In any event I will check out alphaclone. Thanks,
Ben

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

marketfolly — Wed, 04 Nov 2009 02:19:06 -0000

Hey Ben, thanks very much. The actual cloning on the site uses short SPY but if you were to re-create the portfolio for your own investment, you could also just buy SH (short S&P ETF).

In Alphaclone you have the option to go long-only, and hedge with: 25%, 50%, 75%, and 100%. Obviously each hedging metric shifts portfolio performance around a bit. Surprisingly though, long-only still performs quite well too. We chose 50% as we wanted a decent amount of protection from severe drawdowns as we've had 2 recent periods (2002, 2008) with such occurrences. Our goal is to outperform over the long-term and believe that protecting from losses is the top priority.

You can check out Alphaclone completely free with the 14day free trial if you like (http://bit.ly/alphacloning). That way you can play around all you want, as it's easier than someone just taking a bunch of static screenshots for you once inside.

Hope this helps a little bit and let us know if you have any questions. Same goes for the AlphaClone team, they're very helpful.

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

Ben — Wed, 04 Nov 2009 01:42:51 -0000

Pretty impressive... I've been thinking about trying alphaclone but have a couple questions if you don't mind. What do you use as a hedging instrument, i.e. a short the S and P etf or do you actually short SPY or what?
Also just out of curiousity have you tried backtesting with something like a 40% rather then 50% hedge due to the market's longterm upward bias? If so how are the results different. Thanks again for all your efforts,

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

marketfolly — Wed, 04 Nov 2009 00:52:50 -0000

Look forward to revealing it as we shift our focus to managers we think will outperform in the future!

Indeed Atticus will be going separate ways so they'll have to replace it or something of the sort.

Not sure what' sup with Par, have never really looked at it in-depth!

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

houstonn — Wed, 04 Nov 2009 00:33:45 -0000

Jay,
Can't wait for your new fund group!!
Problem with Fein Group is that it has Atticus in it.... so it's probably gonna lose its edge in the future

BTW what's up with Par Capital, it's ranking 3rd !

Re: Market Folly Custom Portfolio Ranked #1 On Alphaclone Leaderboard

AlphaClone — Tue, 03 Nov 2009 12:05:10 -0000

20% a year for ten years. Not bad @marketfolly although the Fein Group has a slight edge on you in terms of risk adjusted returns. :-)