Clones will rule the world some day; this prediction may not seem in sight for humans, but it looks likehedge fund clones have mastered the art of replicating and mimicking returns. AlphaClone’s fundsenable investors to put their money in the same ideas as the hedge fund titans do. There is of course nothing original about cloning a portfolio based on the top holdings of large funds, but then isn’t everybody waiting for new investment thesis from these influential investors just so they can also replicate it.
Speaking of AlphaClone, the fund has done more than well for itself with four out of six main strategies returning greater than 20 percent in 2012. Not only that, the cloning strategy also lives up to its name by projecting almost similar returns as its ‘parent’ fund. Take the example of Dan Loeb’s Third Point Ultra Fund that returned 22.1 percent through October 2012, while the fund’s twin at AlphaClone returned 20.9 percent through November. The Visium Global Offshore Fund returned 21.5 percent through November 2012, while its clone was several steps ahead with a performance of 26 percent. Overall Alphaclone’s L