
Category: Step 3 (Liquid Markets)


Introducing True Alpha
Alpha describes the excess returns a fund can generate relative to the return of a reference benchmark. This benchmark return is called Beta.
Traditionally, these benchmarks were market cap weighted indices, such as the FTSE All Share or S&P 500. Since the 1970’s, it has been possible to buy cheap access to them via passive funds. Continue reading “Introducing True Alpha”

Managing Complexity
Summary: Implementing our investment principles means that it would be useful to measure the complexity of different assets and asset allocations via a complexity ranking. As complexity increases the average expected return tends to increase but the average fund manager … Continue reading Managing Complexity