Return earned in excess of a benchmark, after adjusting for risk.
Positive alpha means a manager or strategy outperformed expectations given its risk profile. Most active managers fail to deliver positive alpha after fees over long periods, which has driven the rise of low-cost index investing.
Return earned in excess of a benchmark, after adjusting for risk. Positive alpha means a manager or strategy outperformed expectations given its risk profile. Most active managers fail to deliver positive alpha after fees over long periods, which has driven the rise of low-cost index investing.
In performance, Alpha is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Positive alpha means a manager or strategy outperformed expectations given its risk profile. Most active managers fail to deliver positive alpha after fees over long periods, which has driven the rise of low-cost index investing..
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