Portable alpha

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Portable alpha is the strategy of managers separating alpha from beta by investing in securities that differ from the market index from which their beta is derived. In simple terms, this is a strategy that involves investing in areas that have little to no correlation with the market.

Alpha is the return achieved over and above the return that results from the correlation between the portfolio and the market (beta).[1]

Resources[edit]

References[edit]

  1. "Hedge fund terms”. Liberty Gateway.