As regular readers will know, we’ve used the somewhat esoteric term “alpha-centric” to describe everything from portable alpha to 1X0/X0 on this website.  Sure, it’s a bit awkward, but ”portable alpha” is just one strategy that is enabled by explicitly identifying and manipulating the various embedded components of actively-managed funds (either long-only or hedge funds).

We used the term to describe Bridgewater Associates, one of firms on the vanguard of alpha-centric investing, when they asked their clients to switch to portable alpha last October:

“Like us at AllAboutAlpha.com, CEO Ray Dalio believes alpha-centric investing represents a fundamental re-organization of the investment industry.”

Despite raising the warning flag about hedge fund leverage, Dalio himself also used the term “alpha-centric” recently to describe Bridgewater’s philosophie de la vie.  As Money Management, an Australian magazine, reported a couple of weeks ago:

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