http://allaboutalpha.com/blog/2006/10/17/portable-alpha-rise-of-the-machine/ Hedge funds, portable alpha, 130/30 alpha-centric investing, alternative investment Thu, 29 Jul 2010 20:51:13 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2006/10/17/portable-alpha-rise-of-the-machine/comment-page-1/#comment-75 Live Financial Services » Portable alpha - Rise of the machine Thu, 16 Nov 2006 18:35:57 +0000 http://allaboutalpha.com/blog/2006/10/17/portable-alpha-rise-of-the-machine/#comment-75 [...] Portable alpha - Rise of the machine By: Gareth Gore, Risk MagazinePublished: October 2006A hat tip goes out to the Kirk Report for identifying this article.? Apparently, the quant jocks at Risk Magazine have taken an interest in portable alpha not so much because of the flexibility of?dividing alpha and beta, but because some newer versions of the venerable strategy involve highly [.] (more) [...] [...] Portable alpha – Rise of the machine By: Gareth Gore, Risk MagazinePublished: October 2006A hat tip goes out to the Kirk Report for identifying this article.? Apparently, the quant jocks at Risk Magazine have taken an interest in portable alpha not so much because of the flexibility of?dividing alpha and beta, but because some newer versions of the venerable strategy involve highly [.] (more) [...]

]]> http://allaboutalpha.com/blog/2006/10/17/portable-alpha-rise-of-the-machine/comment-page-1/#comment-53 All About Alpha » Blog Archives » Merrill Lynch: “New Alternatives in Alternative Investing” Sun, 22 Oct 2006 01:52:56 +0000 http://allaboutalpha.com/blog/2006/10/17/portable-alpha-rise-of-the-machine/#comment-53 [...] Okay, maybe not the whole Earth, but a serious chunk of it.  Why?  Because passive alternatives will begin to crowd out new entrants - just like they did in the mutual fund industry.  Like the quants at Barclays, JP Morgan and SocGen, the authors of this report espouse a new form of quasi-active hedge fund than produces exotic beta at fees above pure passive management (e.g. an ETF) but below pure active (hedge) funds: “…it may be increasingly difficult for investors to justify paying hedge fund fees for the performance of the average active manager. Passive alternatives to active hedge funds represent a natural evolution in an increasingly mature industry.” [...] [...] Okay, maybe not the whole Earth, but a serious chunk of it.  Why?  Because passive alternatives will begin to crowd out new entrants – just like they did in the mutual fund industry.  Like the quants at Barclays, JP Morgan and SocGen, the authors of this report espouse a new form of quasi-active hedge fund than produces exotic beta at fees above pure passive management (e.g. an ETF) but below pure active (hedge) funds: “…it may be increasingly difficult for investors to justify paying hedge fund fees for the performance of the average active manager. Passive alternatives to active hedge funds represent a natural evolution in an increasingly mature industry.” [...]

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