"In any investment strategy, there are essentially three components to the ex-post return: market related exposure (beta), manager skill or 'risk adjusted excess return' (alpha), and randomness. The goal of any active investment manager is to maximize alpha to the extent possible as this is the portion of the return that is attributable to the manager's skill or strategy. In most cases, it is extremely difficult to know what alpha a manager will produce 'before the fact (ex ante)', however, there are certain clues that can help provide guidance on whether a manager is capable of delivering alpha. Among these maybe: superior execution, highly developed capital market analytic skills, superior processing of public information, ability to exploit systematic mispricings, etc. These and other such sources of alpha are colloquially referred to as 'edge'. Every successful investment manager always strives to maximize their edge, and thus their alpha."
About Sharath Sury - Founder and Executive Director of the SCU/Sury Initiative for Financial Innovation & Risk Management (SIFIRM) at Santa Clara University in California’s Silicon Valley, Sharath Sury devotes his time and energy to bringing together thought leaders who can address the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts, Professor Sury has established this invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry. Sharath Sury also serves as an Adjunct Professor of Economics at the University of California and Adjunct Professor of Finance at DePaul University in Chicago. Sharath Sury's interest and experience in wealth management began as an Associate and later Vice President at Goldman, Sachs & Co. He later founded and worked at S4 Capital, where he earned numerous accolades for his work.
http://blog.everything-finance.net/2010/03/06/exclusive-sharath-sury-explains-the-alpha-to-finance-enthusiasts-worldwide-on-everythingfinancenet.aspx
| How it works | Home | Members | Blogs | Photos | Youtube | Videos | Music | Groups | Classifieds | Events | Polls | Forums | Articles | Boards | chat |
Forums
SearchOrca :: Interactive Forum Script
What Defines A True Alpha? Sharath Sury Explains!
New Topic
Post Reply
Flag/Unflag
- Message
Sharath Sury Explains the Alpha to Finance Enthusiasts Online
--------------------------
Posted by Everything-Finance.net STAFF on 3/6/10
SANTA CLARA, Calif. March 6 /Everything-Finance.net/ -- Still curious from the recent Alternative Investment Summit that was Chaired by Sharath Sury at the Opal Conference in Southern California, finance students and enthusiasts remained eager to solidify their understanding of what exactly an Alpha is and how it is used in terms of wealth management. Despite the intricacy behind the concepts of Alpha and Beta, even seemingly newer finance students continued showing interest online, posting comments on various blogs that reveal an eagerly awaiting clarification of this elusive Alpha, and perhaps more importantly, a new generation of Finance students, practitioners, and professors taking shape. So the search for an "Everything-Finance" mentor began! Would the instructor we find meet all of our criteria and still be willing to help? The person that selflessly gives back to the academic community must also be an outstanding mentor, instructor, and experienced professional that has earned the respect given.
It was clear; we were in need of an experienced, esteemed professional like Sharath Sury - an internationally recognized expert in Risk Management and Asset Allocation. As a former VP at Goldman Sachs, and CEO Emeritus of S4 Capital, Sharath Sury handled very complex investment portfolios of some of the nation's most wealthy families and individuals. Mr. Sury has been recognized by numerous notable magazines as one of the top professionals in his field. Also a revered university instructor, Professor Sury has established a forum for the research and discussion of new developments in economics and finance, with an emphasis on risk management and innovation. Who better to answer those questions than Sharath Sury, himself? Everything-Finance.net now has the exclusive, wealth manager's definition of Alpha by Professor Sury, in his own words:
Professor Sharath Sury has also generously extended his hand to Everything-Finance.net, offering his expertise again soon! In the near future Sharath Sury will answer, conceptually clarify, and define additional special investment terms that have significant importance in current and future economic climates. Special thanks to Professor Sury for taking the time to briefly analyze and precisely define these terms in his continual efforts to help students (and enthusiasts, alike) avoid further confusion on what can already be very complicated subject material. This is especially true -- as we just learned with Alpha -- if you're not careful about where, and in what context, you find a certain definition.
SOURCE Everything-Finance.net
Copyright 2010 EVERYTHING-FINANCE.net
Be sure to visit the CityEntree Featured Restaurants.
Copyright © 2012 Your Company.
