Abstract

When traditional investment managers think of “portable alpha,” they often recoil, associating the concept with hedge funds; arcane, often highly quantitative approaches to investing; financial leverage; and undefined risk. Hedge funds do often offer portable alpha strategies and often carry these other daunting attributes. But none of these characteristics need apply. Investors can employ portable alpha strategies without turning either to hedge funds or to leverage, or any of these particular risks. In time, as this difference becomes apparent, the investment community will begin to embrace the advantages of portable alpha. The approach will gain greater currency, inside and outside hedge funds, and will begin to edge out more traditional approaches to investing, most especially the more conservative traditional investment managers.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.