Two stories today show that alpha-centric investing is taking hold.  The first is the release of a new white paper by Casey Quirk and Merrill Lynch.  The report says that “Active alternative investments, including hedge funds, will more than double to around $11 trillion by 2011…”

The report contains what the authors call “four winning product strategies” that will define success in the asset management industry.

1. “Liberating the Efficient Frontier through products that eliminate all investment constraints for which there is little economic rationale, such as liquidity of issues, style box adherence, no shorting and no leverage.”

Cited Example: Removing short constraint (130/30) (Postings, News Archives)

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