Tainted Alpha

Tainted Alpha
An alpha return that cannot be attributed solely to the money manager due to consequential beta exposure. Tainted alpha is seen when money managers invest in individual equities, instead of using market neutral strategies such as arbitrage, and hedging.

Due to many individual investors being unable to invest in funds that use pure alpha strategies (i.e. hedge funds), tainted alpha is common among the majority of managed portfolios. For most this is acceptable, because of the benefits of passively capturing gains that are associated with long term beta exposure, along with a money manager's stock picking ability.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Health and Disease — ▪ 2009 Introduction Food and Drug Safety.       In 2008 the contamination of infant formula and related dairy products with melamine in China led to widespread health problems in children, including urinary problems and possible renal tube… …   Universalium

  • Contaminated haemophilia blood products — Contaminated hemophilia blood products were a serious public health problem in the late 1970s through 1985. These products caused large numbers of haemophiliacs to become infected with HIV and hepatitis C. The companies involved included Alpha… …   Wikipedia

  • Disasters — ▪ 2009 Introduction Aviation       January 23, Poland. A Spanish built CASA transport plane carrying members of the Polish air force home from a conference on flight safety in Warsaw crashes near the town of Miroslawiec; all 20 aboard are killed …   Universalium

  • Gloria Jones — Infobox musical artist 2 Name = Gloria Jones Img capt = Gloria Jones in 1976, performing with T. Rex Background = solo singer Born = birth date and age|1945|10|19|df=y Cincinnati, Ohio Genre = Gospel, Northern soul, R B Instrument = Piano, vocals …   Wikipedia

  • American Stores — Infobox Company company name = American Stores Company, Inc. company company type = Public area served = United States fate = Acquired by Albertsons foundation = 1917 defunct = 1999 location = Original company in Philadelphia, Pennsylvania; Later …   Wikipedia

  • Bateman's principle — In biology, Bateman s principle is the theory that females almost always invest more energy into producing offspring than males, and therefore in most species females are a limiting resource over which the other sex will compete.… …   Wikipedia

  • Green Lantern Corps — Superteambox| imagesize = caption = Five members of the new Green Lantern Corps from Green Lantern Corps #1 . Featured: Kilowog, Guy Gardner, Isamot Kol, Soranik Natu and Vath Sarn. Art by Patrick Gleason. team name = Green Lantern Corps… …   Wikipedia

  • Optimus Prime — is a fictional character from the Transformers franchise. Prime is the leader of the autobots, a faction of transforming robots from the planet Cybertron. The autobots are constantly waging war against a rival faction of transforming robots… …   Wikipedia

  • List of doping cases in cycling — The following is an incomplete list of doping cases in cycling, where doping means use of physiological substances or abnormal method to obtain an artificial increase of performance . It is neither a list of shame nor a list of illegality, as the …   Wikipedia

  • November 2010 — was the eleventh month of that year. It began on a Monday and ended after 30 days on a Tuesday. Portal:Current events This is an archived version of Wikipedia s Current events Portal from November 2010 …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”