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By DailyAlts Staff AlphaClone’s proprietary Clone Score methodology is used to power its popular AlphaClone Hedge Fund Downside Hedged Index and the related AlphaClone Alternative Alpha ETF (NYSEARCA: ALFA ), which was launched in 2012 and now has approximately $155 million in assets. On November 2, the firm launched a new index, the AlphaClone International Downside Hedged Index, that also uses the Clone Score methodology but is focused on American Depository Receipts (“ADRs”) – certificates that trade in the U.S. but represent shares of foreign stocks. As a follow on, AlphaClone launched a new ETF to track the new index, the AlphaClone International ETF (NYSEARCA: ALFI ). In Pursuit of Alpha “Pursuing the potential for alpha is even more important today for long-term investors, given the anemic growth forecasted for equities and bonds over the next several years,” said AlphaClone CEO Maz Jadallah, in a recent statement. “We’re delighted to introduce an international version of our index, further expanding the number of alpha-seeking index strategies available to global investors.” The new index will consist of at least 40 “high conviction” ADRs selected from the regulatory filings of select institutional investors. The proprietary Clone Score is used to continuously rate managers based on the “efficacy of following their disclosures,” and then aggregates the high conviction holdings from the managers with the highest scores. The index also features a “dynamic hedge” that introduces short-selling when the S&P 500 closes below its 200-day moving average at any month’s end. “Having seen success with our methodology inside separately managed accounts over the past five years, we’re excited to further expand access to our innovative investment methodology and are committed to helping long-term investors succeed,” Mr. Jadallah said. More detailed information about the index and its calculation methodology (see “Guidelines” document link) can be found here: AlphaClone International Downside Hedged Index . New International ETF AlphaClone’s new ETF, the AlphaClone International ETF, aims to track the new international index. As is the case with the index, the fund can hedge the long portfolio based on a trend following signal, and will use an MSCI EAFE Index based security to hedge the portfolio. The advisor to the fund is Alpha Clone Inc., while the sub-advisor is Vident Investment Advisory, LLC. Fees on the ETF are 0.95%, which is the same as the U.S. equity focused AlphaClone Alternative Alpha ETF. Earlier this year, AlphaClone announced its plan to launch four new ETFs based on the Clone Score methodology, including one that will be based on the new index. In addition, the firm announced in September that it had received a $2.25 million venture investment from Operative Capital , allowing it to expand its marketing and sales operations. Scalper1 News
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