Many investors have come to accept the fact that the major factors like value and momentum will produce excess returns over the long-term. But what if the fact that these…
Tag: Alpha
Buffett’s Disappearing Alpha – Why It Doesn’t Really Matter
Warren Buffett has one of the greatest long-term investing track records of all time. The chart below shows the excess return (y-axis) over the market of some of history’s best…
Here’s How Active Managers Squander Alpha
New research shows that active managers do in fact generate alpha, but have a hard time keeping it because they hold positions too long. This according to an article in…
Commentary: Smart Beta vs. Alpha-Beta Combination
A recent article in CFA Institute suggests ways to combine alpha and beta factor strategies to create a “simple and clean equity portfolio” that offsets some of the “innate human…
Bill Gross Says Odds of Outperformance Have Plunged
Bill Gross, who defined his career by beating benchmarks in the bond market, says the days of outperformance are largely over. This according to an article in Bloomberg. “There are…