Portable Alpha Pays off for Pennsylvania
| Aug 17th, 2006 | Filed under: Portable Alpha & Alpha/Beta Separation | By: Alpha Male |
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By: Susan L. Barreto, HedgeWorld.com
Excerpt:
“Portable alpha has gained interest in recent years for its promise of empowering large institutional investors to separate the sources of alpha and beta returns. Public equity exposure through indexing provides market returns (beta), and then alpha is strategically added through hedge funds. PennSERS was one of the early players in this realm, adopting a program in January 2002. Since that time, the portfolio has earned 4.5% more than if the fund had invested only in the S&P 500, officials said in a statement.”
