Also in this playlist...
This transcript is automatically generated
Hedge funds have underperformed the market this year by a long shot I mean as well as the S&P 500 is done you're gonna pay these guys to lose your money -- the HFR equity -- index shows that this is happening at.
It's only up about 5% while the S&P 500 is nearly -- those -- so should follow the squeaky wheel.
But the loud mouth investors out there must've Dalai is the alpha -- founder and CEO -- -- -- fund.
Where -- aggregates just the smartest of the Smart money and you do that.
X you do it because I -- this fascinating you'll find the loud mouth activist investors see what they're doing and by what their price correct.
We we basically develop something called a clone score which measures the persistence and returns.
Four investor for each manager in our universe.
Based on following their disclosures over a long period of time.
We continuously evaluate managers and our universe -- is about 400 managers.
We we calculate that -- score every six months and we pick managers -- the highest close score.
To make it into the index that struck by the LC if you give -- some of the names of the hedge funds that you follow.
Well but we we've got 400 managers in our in our.
He had an annoying that your biggest names out there fortress right exactly anyone that you think of that is a brand name is in our in -- and are -- It's you know activists are apropos.
The last -- so.
We follow -- people like Jana partners like relational like try and like icon like third point.
-- almost any sort of a hedge fund manager that you can think.
-- managing over.
A number of -- assets under management we track.
Now Warren Buffett song on this list here right -- but yet he he doesn't exactly run a hedge fund but he's got a huge stock portfolio and by the way.
After the bell today thirteen F filings are coming out of this is where these very people.
And reveal what they've bought and what they've sold right.
That is correct that's the data set that we use that's the public data source that we use in order to.
I derive our -- scores we have a data set that goes back to 2000 across water managers of those filing so.
We basically clone different strategies for every manager.
We've got about 300 hedge funds and about a hundred institutional investors like Warren Buffett and.
It's going to our viewers.
It's working whatever your doing is working because the -- -- fund ticker symbol AL FA.
Is up seventeen.
And a half percent I find this so interesting because.
Sometimes when -- investors get involved and they are the so called loud -- it it to become real activists.
-- actually thinking in the best interests of the company and what would move it Sony's the most recent example where Daniel -- about said split up the entertainment part of this because the electronics.
Are not doing well stock shot up double digit percentages it's down slightly today for -- but.
Really you know this is a company that has done terribly in fact and at 90% down from its peak.
In market value so when you take kindly to the -- now investors -- you can tell are really trying to to effectuate pot to to change.
Yes exactly and we that we actually have an activist master strategy that we run inside separate accounts which is different from the -- ET up.
That's up 80% vs 60% for the S&P 500 since we started it in September 2000 I want -- -- some of the songs that -- heavily invested in here and then there's the obvious once apple because they're -- investors there David Einhorn making a big deal about why apple should start giving back money to shareholders.
With News Corp.
Yahoo! healthy group AIG triquint.
Semiconductor company why triquint who's who's a -- -- about triquint.
While -- several managers and probably have a position in triquint one of them made it into our index and that therefore that's why.
That that company is has made it.
Do you think Daniel -- going to be successful and has pushed up on -- break off that entertainment chunk of the company.
I spend I spend you know -- big chunk of my career working for an integrated.
Entertainment media company and I read downloads -- it's really hard to argue with his logic.
You know -- you often hear.
Entertainment companies talk about the synergies in between.
They're divisions and the reality is is that those synergies are never really as naturalized as as as people as as those people right like.
So I think the challenge for mr.
-- though is that -- that Sony is a Japanese company that culture there is very different from American companies.
Their decision making process is a lot slower.
And they may not much may not care as much about sort of outsider external pressures as American companies might.
Monster -- -- has an idea for alpha clown Fonda and it's working right now up 17% where he pulls out a loud mouth activist investor sees what they're doing and clubs that good to see you.
Come back again thanks so it's good to see you again.
-- imclone founder and CEO of monster dollar and remember after the bell.
All of those thirteen F filings are coming up we'll see what the lab help investors and hedge fund guys are doing closing bell.
Filter by section