Mon, Jun 29, 2026
A A A
Welcome Guest
Free Trial RSS pod
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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m