Reasoning your way from alpha to beta

academic paper

In this article, we emphasise the role hedge fund strategies can play in traditional investors' portfolios and highlight a profound trend in the alternative industry that involves progressively switching from an alpha logic to a beta one.

First, it is important to note it is not because a fund is a hedge fund that the risk-free asset is necessarily a good benchmark.

While nearly all hedge funds highlight a so-called 'absolute-return' policy, the risk-free rate is only a good benchmark if the