Wed, Jul 8, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Paper claims alternative beta outperforms equities and hedge funds

Monday, December 03, 2012

amb
Laurent Favre
Benedicte Gravrand, Opalesque Geneva:

The alpha vs. beta debate is never over. It separates those in the asset management industry who believe market beta is cheaper and more profitable as alpha is scarce, and those who try to focus on capturing alpha.

This is pushing pertinent research, the latest of which comes from quantitative analyst Dr. Krishna Nehra and partner/CEO Laurent Favre of AlternativeSoft, an investment software solutions provider based in London, who have just published a paper called "Quick & Easy Investing - the Alternative Beta Approach Revisited".

An increasing number of investors are migrating away from active products towards passive ones such as exchange traded funds (ETFs) and other index-tracking funds, they claim. This is because the latter can provide beta returns similar to many traditional active managers, but at lower cost.

(The excess return of a fund or portfolio relative to the return of a benchmark index or to what would be predicted by an equilibrium model is alpha - something hedge funds and active managers claim to capture. Whereas beta is a measure of the volatility, or systematic risk, of......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Graysons hedge funds under scrutiny for possible ethics violations, Court rejects hedge funds motion to block merger of Samsung affiliates[more]

    Graysons hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner