In this paper, we take a look at Alpha and the DNA of investment returns, zooming in on what it means to add value in the new era of portfolio management.
The decades-long quest to capture excess return — from the original CAPM Beta to Alternative Risk Premia — has deeply transformed how managers build portfolios, to a point in which having a tight grip on investment factors is not an option anymore.
Yet, overperformance is still widely sought-after, leaving a thought-provoking question on the table: is Alpha becoming the ability to move between Betas?
- Exposing the DNA of Returns
- Questioning Investing Rule No.1
- Alpha is More Than You Think
- Why Invest in Factors
- A New Dawn for Alpha?