Capturing Political Alpha

May 23rd, 2010 | Filed under: CAPM / Alpha Theory, Today's Post | By:
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By: Miran Ahmad, CAIA, Editorial Board

When it comes to investing, it is indeed All About Alpha.   Jane Li’s post on these pages ‘Examining “Real Alpha” and “Exotic Beta” in Mutual Funds’ serves as an excellent starting point for the case that asset managers can still create bona fide alpha over their passive-only counterparts.  But what about political alpha?

For Starters

What is political alpha? It is the additional returns generated by an active investment manager assessing, navigating and positioning investments to benefit from the political landscape and impact of political legislation and regulation. Political alpha can be seen as a subset in the overall alpha-generating space.


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  2. […] of art as an asset class? Keeping the political landscape in mind, perhaps by brushing up on “Capturing Political Alpha”, may be the greatest source of returns. Why? Because art valuations rise and the Mei/Moses index […]

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