Back to Basics: Portable Alpha
| Jul 1st, 2006 | Filed under: Portable Alpha & Alpha/Beta Separation | By: Alpha Male |
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By: Ceri Jones, Pension Management Magazine
Published: August 1, 2004
Excerpt:
“The hot investment topic of the moment, portable alpha, is a non-correlated investment strategy structured to combine manager skill (alpha) with the desired asset allocation (beta). The strategy explicitly separates alpha and beta returns and attempts to capture them independently of each other, using derivatives. Returns are created which are not dependent on market performance, allowing institutional investors to target a combination that best represents their desired risk and return trade off.”
