Implementing a Portable Alpha Strategy
| Sep 12th, 2006 | Filed under: Portable Alpha & Alpha/Beta Separation | By: Alpha Male |
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By: Pension & Investments Magazine (Supplement)
Published: April 2006
Excerpts:
“It’s an investment technique whose time has come: portable alpha. Driven by their need to find innovative ways to generate superior risk-adjusted returns, many plan sponsors are considering using portable alpha strategies for at least part of their portfolio. Some pension plans that are convinced of the merits of separating alpha and beta are reorganizing their entire investment function around this concept.”
“A checklist for considering alpha managersWhen hiring an alpha manager, it makes to consider certain issues…”
“All managers are searching for alpha; not all will find it. So for the plan sponsor, the mere fact that they have made the decision to separate alpha and beta does not mean that alpha will appear.”
