Alpha is how much excess return you had over the market (or risk free return( E.g. if you made 10% when overall market was up 15% for the year, you have negati

Alpha is how much excess return you had over the market (or risk free return( E.g. if you made 10% when overall market was up 15% for the year, you have negative alpha. [As someone could have bought index and held it through year to generate better return] If you made 20% when market was up 10%, you have positive alpha. That is why everyone in the investment community is 'seeking alpha'.