Commentary (UPDATED: 3/18/2010)
The AlphaClone International TOP10 Popularity Clone continues to outperform its benchmark BNY ADR Index significantly, returning 10% YTD vs. -0.4% for the index. The clone also consistently outperforms the index by a significant margin in the 1Y, 3Y, 5Y and 10Y time horizons (see tables below). The clone's current portfolio holds some predictably popular ADR securities such as Baidu Inc. (NASDAQ:BIDU) and Teva Pharamaceutical (NASDAQ:TEVA), but it has been served well by holding some less predictable names as well, such as Fomento Economico Mexicano SAB (NYSE:FMX) (up nearly 12% since last rebalance) and Focus Media (NASDAQ:FMCN) (up nearly 20% since last rebalance). The clone's next rebalance date is on 5/21/2010.
The AlphaClone International TOP10 Popularity Clone was developed for investors seeking aggressive long term capital appreciation potential with similar risk and volatility as the stock market.
The clone seeks to invest quarterly in the ten most popular (widely held) ADR securities that are also ranked as a top 20 holding amongst a group of 144 fund managers selected from AlphaClone's hedge fund universe.
The group combines 144 hedge funds selected from AlphaClone's fund universe and screens them for just their ADR holdings.
- Update frequency: quarterly, last rebalance on 2/19/2010
- Turnover in group disclosures: 44% (avg. last four quarters)
- Clone Turnover: 52.5% (avg. last four quarters)
- No. of clone holdings: up to 10