Fri, Sep 4, 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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asnesss managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Ricos Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner