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Alternative Market Briefing

Other Voices: The four dimensions of the hedge funds arms race for Alpha

Wednesday, August 08, 2018

From Don Steinbrugge, Agecroft Partners: It is no secret that the vast majority of investors, including hedge funds managers, have underperformed market indices over time. However, some managers have distinguished themselves generating very strong risk adjusted returns. Outperforming an index requires an information advantage over what is broadly available in market. It also requires a way to process that information to more accurately price securities and select those that demonstrate divergence versus the market. It is becoming increasingly more challenging to achieve this, resulting in an arms race for alpha. Investment processes must be constantly enhanced to stay relevant.

We recently spoke to four leading hedge fund industry experts who will be presenting on the "Arms Race for Alpha" panel at our Gaining the Edge - 2018 Hedge Fund Conference this fall, including David Gilmore, Managing Director-Investments, The Harry and Jeanette Weinberg Foundation, Inc., Alifia Doriwala, Managing Director and Partner, Rock Creek, Robert Kiernan CEO, Advanced Portfolio Management and Karen Inal, Senior Portfolio Manager, The Andrew Mellon Foundation.

"The goal is to turn data into information, and information into insight that can be expressed in portfolios to deliver Alpha. Active management has always been about identifying investment opportunities before they are priced into the broader market," stated Gilmore. "We are at the intersection of finance and technology, and ......................

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