Cover image for Searching for alpha : the quest for exceptional investment performance
Title:
Searching for alpha : the quest for exceptional investment performance
Author:
Warwick, Ben.
Personal Author:
Publication Information:
New York : Wiley, [2000]

©2000
Physical Description:
xix, 202 pages : illustrations ; 24 cm.
Language:
English
ISBN:
9780471348221
Format :
Book

Available:*

Library
Call Number
Material Type
Home Location
Status
Central Library HG4551 .W37 2000 Adult Non-Fiction Central Closed Stacks
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Summary

Summary

Can anyone win the investing game? Considering the small number of mutual funds that produce market-beating returns, the task may seem nearly impossible. Even so, there remains an elite group of investment professionals who manage to produce market-beating returns, year after year. What is their edge?

Their edge is defined as alpha-which represents the portion of an investment fund's return that is generated solely by the skills of the portfolio manager. Investors, traders, and speculators alike have searched for a dependable source of alpha for as long as there have been financial markets.

How much of this search is art, and how much is science? The answer to this and other questions can be found within this provocative and highly entertaining book. Some of the topics covered in Searching for Alpha include:
* The three reasons why the mutual fund industry will always underperform the overall stock market
* How to profit from the idiosyncrasies of human behavior
* What the waxing-and-waning tendency of oil wells can tell us about the impact of technology on the investment management industry
* The profit potential of value stocks for the next decade


Author Notes

BEN WARWICK is a principal of The Bornhoft Group, a registered investment adviser that specializes in alternative investments, and Warwick Capital Management, a quantitative trading firm. He is also the Quant View columnist for worldlyinvestor.com, a leading financial Web site. Mr. Warwick has authored three previous books on finance and investing. He received a Bachelor of Science in Chemical Engineering from the University of Florida and an MBA from the University of North Carolina. He lives in Denver, Colorado.


Table of Contents

Part 1 Perception and Reality
1 The Equation That Changed the Investment Worldp. 3
2 The Revolution of Index-Based Investingp. 17
3 Can Anyone Outperform the Market?p. 29
4 Alpha Respite I: The Case of the Tempted Money Managerp. 43
Part 2 Free Lunch, Anyone?
5 Arbitrage and Other "Free" Lunchesp. 59
6 Enhancements to CAPM: The Search for Financial DNAp. 71
7 Managed Futures and Portable Alphap. 85
8 Alpha Respite II: The Case of the Converging Correlationsp. 101
Part 3 The Business of Adding Value
9 Alpha Generation and Taxesp. 121
10 Behavioral Finance: Are We Really That Irrational?p. 131
11 Technology and the Capital Marketsp. 145
12 Alpha Respite III: The Enigma of Asset Allocationp. 159
Notesp. 177
Bibliographyp. 187
Indexp. 195

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