Turning theory into reality
| Jan 19th, 2007 | Filed under: Portable Alpha & Alpha/Beta Separation | By: Alpha Male |
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By: Hugo Greenhalgh, FT Mandate
Published: November 2006
FT published a good overview of portable alpha in November. It’s a follow-up to FT Mandate’s June 2006 piece called “Portable alpha gains widespread acceptance“.
A Disruptive Financial Technology
Greenhalgh suggests the development of new financial technologies is enabling portable alpha:
“With financial instruments such as swaps becoming more widely accepted, the notion of portable alpha has moved from the theoretical to a question of just how it can be applied.”
“…notes Morgan Stanley’s Brandon Horwitz. ‘But now it is slowly making its way into the mainstream. The key driver of this is that the derivatives to practically implement portable alpha are becoming much more liquid and much easier to use, and people are becoming more comfortable using them.’”
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