AlphaClone Core Investment Strategies Outperform Top Decile Hedge Funds

Clone Portfolios Deliver Performance with Lower Overall Volatility than Market

SAN FRANCISCO--(BUSINESS WIRE)--AlphaClone LLC, a leading innovator in hedge fund position replication, reports 2012 performance through Q3 for its Momentum Select and AlphaClone Select portfolios of 33 and 18.7 percent, respectively. The performance of these rules-based clone portfolios ranks among the top decile of hedge fund returns for the year based on research from Goldman Sachs as reported by Business Insider, supporting the utility of 13-F disclosure research as a basis for successful investment strategies.

“We designed our core strategies to tap into the potential alpha generated by established hedge fund managers”

The performance of AlphaClone’s Momentum Select and AlphaClone Select strategies also outperformed the S&P500, which returned 16.4 percent through September 2012. The average long/short equity hedge fund has returned 5.5 percent over the same period according to Hedge Fund Research Inc.

“We designed our core strategies to tap into the potential alpha generated by established hedge fund managers,” asserts Maz Jadallah, CEO of AlphaClone. “Since inception in January 2011, our Momentum Select strategy's total returns have outperformed the Russell 2000 index by 13 percentage points (1,330 basis points) at an annualized volatility that is 250 basis points lower.”

AlphaClone’s Core Strategies are accessible through separate accounts and/or an exchange-traded fund (ETF). Financial professionals and institutional investors can access all separate account strategies via the Placemark Investments’ UMA Marketplace® platform or through Folio Institutional. Individual investors can access AlphaClone’s strategies by establishing managed accounts with the firm. AlphaClone's CEO will be presenting at the Alternative Assets Summit in Las Vegas on October 17-18.

About AlphaClone LLC

AlphaClone is a registered investment advisor and equity research firm that empowers investors to intelligently follow the collective intelligence of established hedge funds. AlphaClone offers both managed investment accounts and online access to its powerful research platform where investors can create and then simulate ten-year backtests for investment portfolios derived from the public disclosures of the world's top hedge funds and institutional investors - a process called “cloning”. Easy-to-use, powerful and flexible, AlphaClone is designed for both individual and professional investors who want to know what the smart money is doing and more importantly how they can benefit from that knowledge. The firm is based in San Francisco, Calif.

AlphaClone LLC is in no way affiliated with the hedge funds or institutional investors whose public disclosure filings are utilized to derive investment decisions. The S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The index focuses on the Large-Cap segment of the U.S. Equities market. The Russell 2000 Index is an unmanaged market index generally considered representative of Small-Cap segment of the U.S. Equities market. An investment cannot be made directly in an index. Alpha is the abnormal return on a security or portfolio in excess of what would be predicted by an equilibrium model like the Capital Asset Pricing Model (CAPM). References to other funds should not be interpreted as an offer of these securities. The SEC does not endorse, indemnify, or guarantee the business practices, selling methods, the class or type of securities offered, or any specific security.

Actual performance figures for Momentum Select and AlphaClone Select are unaudited estimates generated by AlphaClone, LLC, and are subject to modification. Performance is in U.S. dollars, includes the reinvestment of dividends and is net of trading expenses and management fees (1.5% per year combined). Past performance is not a guarantee of future returns. AlphaClone Core Strategies seek capital appreciation as their investment objective. This communication does not constitute an offer or a solicitation to invest with AlphaClone, LLC. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.