passive management

  • 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 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: […]