"I can't believe it's not beta," academic research finds of hedge funds

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Equity long/short strategies, on average, deliver the highest proportion of alpha of the mainstream hedge fund strategies, according to Narayan Naik, professor of finance at the London Business School, with only 33% of returns attributable to beta. Distressed securities is next best, with a 41% beta component.

Returns from all other strategies are at least 50% beta, Naik said, ranging from fixed income at 50%, trend-followers with 55%, merger arbitrage at 76% beta and convertible arbitrage with

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