We investigate the properties of the frustrated underdoped Hubbard model on the square lattice using two complementary approaches, the dynamical cluster extension of dynamical mean field theory, and variational Monte Carlo simulations of Gutzwiller-Jastrow wavefunctions with backflow corrections. We compare and discuss data for the energy and the double occupancies, as obtained from both approaches. At small dopings, we observe a rapid crossover from a weakly correlated metal at low interaction strength U to a non-Fermi liquid correlated state with strong local spin correlations. Furthermore, we investigate the stability of the correlated state against phase separation. We observe phase separation only for large values of U or very large frustration. No phase separation is present for the parameter range relevant for the cuprates.

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