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There's no precise definition, but I prefer "funds that focus on alpha", as opposed to e.g. an index fund.
by SatvikBeri 1y ago
There's no precise definition, but I prefer "funds that focus on alpha", as opposed to e.g. an index fund.
- fsckboy 1y agoi'm not being snarky but, if you want to focus on alpha, construct a portfolio that removes beta, and nobody does that except portfolio theory. so probably "funds that focus on obtaining private information, or flaws in public information"? focusing on alpha and finding undiscovered alpha are not the same thing, and it's absolutely not clear and contrary to portfolio theory that you would succeed