capital market efficiency

  • Part 2 – Alpha as Life
  • Passive Investing – Active Investing – Alpha Returns Index funds are passive investments; their goal is to deliver a return that matches a benchmark index. The Old Testament of indexing is Burton Malkiel’s classic A Random Walk Down Wall Street, first published in 1973 by W.W. Norton and now in its ninth edition. For typical […]

  • Chapter 09 – The Text Frontier – AI, IA, and the New Research
  • Hunting Investment Alpha and Trading Alpha from Online News, Social Media, and Rumors Alpha hunters are always looking for new territory. When a strategy becomes known and used by too many players, the collective market impact of getting in and getting out will squeeze out all the profit juice, and only the lowest-cost transactors (large […]

  • Chapter 04 – Where Does Alpha Come From?
  • Where Does Stock Alpha and Alpha Return Come From? “Life Is Alpha. The Rest Is Details.” — Popular T-shirt at hedge fund manager events There was a time not too long ago when, if you posed the question “Where does alpha come from?” to a roomful of academic financial economists, most of them would complain: […]