Note to Bloomberg: Chet Currier is a very smart man.
Dec 19th, 2006 | Filed under: Portable Alpha & Alpha/Beta Separation, Retail InvestingKudos to Bloomberg’s Chet Currier for shining the spotlight on alpha-centric investing today (“Does Alpha-Beta Spell “The End” for Mutual Funds?“). Reports Currier:
“The very model of a mutual fund is indeed outmoded, argues a large and growing group of financial researchers and professional money managers who are busy describing, building and proselytizing for a different way of doing things.”
The piece goes on to provide a balanced view of this paradigm shift peppered with a dose of skepticism that we believe is healthy when confronting such fundamental change.
But in the end, Currier concludes that the genie has been let out of the bottle and isn’t going back in anytime soon:
“The alpha-beta community already has been years in the growing. It will be years more before it penetrates, say, the 401(k) retirement-savings market where mutual funds reign now. But a real challenge has been laid down, and it isn’t going away.”
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[...] While Bloomberg’s Chet Currier may be right that it will be a number of years before alpha-centric investing truly catches on in the retail investment industry, we believe UMA’s represent a base camp from which alpha-centric investing can scale new heights. [...]
[...] Bloomberg’s Chet Currier is generally in tune with alpha-centric investing.  In a column last fall, he quite correctly observed: “The very model of a mutual fund is indeed outmoded, argues a large and growing group of financial researchers and professional money managers who are busy describing, building and proselytizing for a different way of doing things…The alpha-beta community already has been years in the growing. It will be years more before it penetrates, say, the 401(k) retirement-savings market where mutual funds reign now. But a real challenge has been laid down, and it isn’t going away.†[...]