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How to Invest Like a Hedge Fund

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  • Description

    Alphaclone CEO Maz Jadallah on how investors can profit using hedge fund strategies.

  • Duration 3:21
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-- like -- hedge fund manager always seem like a kind of a fantasy to retail investors like you would -- but it's a reality now.

Our next -- firm tracks hedge fund disclosures and -- investing strategies from that information go to me now.

Founder and CEO of alpha clone Mazda dollop -- good to -- -- thanks for coming it.

I wanna ask you about some have been hearing -- quite a bit frequently which is the reallocate she's been going on -- past couple weeks with hedge funds.

That there are -- all dumping apple and buying in to AIG is or any truth to that.

Well yes and no on one level apple which has been the most popular hedge fund position over the last three years is no longer wearing that crown.

It is now AIG.

Fact apple -- dropped to third place behind AIG and Google.

But if you look at the aggregate number of shares held -- -- managers we follow and we follow about 400 managers.

The aggregate number of shares is only.

Decreased by about ten -- 11%.

So it's not much of the -- bull pull back then Naira just there is just as many buyers -- there are sort of sellers of of apple amongst.

The hedge fund crowd.

Finally.

Our hedge fund long short index which is tracked by our alpha ETF still has apple as the largest weighted position at 10% then.

And also.

Bob Simon on the floor of the New York Stock Exchange where it got very excited today with a record to play here for the Dow Jones industrials.

You're company is able to really track the movements of hedge -- why because they of course have to disclose their holdings tell.

What trends you're seeing aside from apple obviously it's sort of six of one half a dozen of the other as far as Bulls -- Bears are concerned but what are they selling what are they getting out out.

Thanks was up I think if you look at sectors that there are selling.

It's consumer Staples and utilities which.

-- this kind of a bullish sign right because those those are the sectors that investors would sort of flocked to for shelter.

If they think there is a protracted.

Correction.

Ahead.

So that those -- the the sectors that they're selling.

-- -- what about the frequency of the trades themselves I'm sure a lot of folks out there the retail investors think.

The hedge funds do what's so fast they have these super machines supercomputers sickened.

Do trades by that the millions of a second something and I could never do is -- truth to that.

Can you really learn despite not having the machines they have particular to invest like them.

Sure I think you know one of the fundamental -- that we've been able to sort of burst.

-- -- through our research is.

That average holding period -- monks.

Hedge funds is really much longer than most people think.

The average is about a year.

And if you look at the top half of their positions there in the -- you know the large positions.

It can be much much longer than that.

So it's because the holding periods -- that long that one can utilize.

Potentially these disclosures to great affect of course our results.

Sort of speak allowed us about that Mazda -- alpha clone -- CEO was great to see you thanks for coming in appreciate it.

Thank you thank loaning Fannie.

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