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	<title>Comments on: 130/30 Quant vs. Fundamental: Quants have a bigger spice cabinet</title>
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	<link>http://allaboutalpha.com/blog/2007/11/11/13030-quant-vs-fundamental-quants-have-a-bigger-spice-cabinet/</link>
	<description>Hedge funds, portable alpha, 130/30 and alpha-centric investing</description>
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		<title>By: Monday links: partial positions &#171; Abnormal Returns</title>
		<link>http://allaboutalpha.com/blog/2007/11/11/13030-quant-vs-fundamental-quants-have-a-bigger-spice-cabinet/comment-page-1/#comment-42818</link>
		<dc:creator>Monday links: partial positions &#171; Abnormal Returns</dc:creator>
		<pubDate>Mon, 12 Nov 2007 17:11:32 +0000</pubDate>
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		<description>[...] The value of breadth in managing a 1X0/X0 portfolio. (All About Alpha) [...]</description>
		<content:encoded><![CDATA[<p>[...] The value of breadth in managing a 1X0/X0 portfolio. (All About Alpha) [...]</p>
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		<title>By: Walt French</title>
		<link>http://allaboutalpha.com/blog/2007/11/11/13030-quant-vs-fundamental-quants-have-a-bigger-spice-cabinet/comment-page-1/#comment-42439</link>
		<dc:creator>Walt French</dc:creator>
		<pubDate>Mon, 12 Nov 2007 04:24:09 +0000</pubDate>
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		<description>Then rack up another advantage to being a quant: we have these clever &quot;optimizers&quot; that allow us to match not just beta, but sectors, styles and just about any other factor, so we only take significant bets where we want.

Not that we always try to be exactly beta 1.0; beta has been a pretty good bet, and the attitude is that high total return is the big issue, not modest, low-risk alpha above some 0.6 beta. Different managers have different strategies, which don&#039;t always work. But they can get what they want, with not too much work.</description>
		<content:encoded><![CDATA[<p>Then rack up another advantage to being a quant: we have these clever &#8220;optimizers&#8221; that allow us to match not just beta, but sectors, styles and just about any other factor, so we only take significant bets where we want.</p>
<p>Not that we always try to be exactly beta 1.0; beta has been a pretty good bet, and the attitude is that high total return is the big issue, not modest, low-risk alpha above some 0.6 beta. Different managers have different strategies, which don&#8217;t always work. But they can get what they want, with not too much work.</p>
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