Lance on Feb 06 2008 | Filed under: Asset Allocation, Great Investors, indexes
One of my favorite people to read is Rob Arnott, who never ceases to examine every truism, shibboleth and academic orthodoxy in the field of finance. What are alpha and beta? Why and when is it important to distinguish between them.
All About Alpha reviewed some of his points a little over a year ago, and [...]
Lance on Feb 03 2008 | Filed under: Hedge Funds, benchmarks, indexes
Index investing is often described as “passive” or “beta” investing. However, one thing that is often looked past is exactly how active the construction process of indexes is in practice. Steve Galbraith used to say when I, and he, was with Morgan Stanley (before he went to manage money with Maverick Capital) that buying S&P500 [...]
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