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Better than Alpha: Three Steps to Capturing Excess Returns in a Changing World
A powerful new approach for giving up the ghost of alpha―and building an investing portfolio that meets your objectives
The concept of beating markets is just a lot of hype. Successful investors don’t find “alpha,” they find value―and that’s what this book helps you do.
Better Than Alpha provides the perspective, insights, and tools you need to retrain your focus away from searching for alpha and toward actions that produce superior investment outcomes.
Chris Schelling explains why strategies based on “beating the markets” are doomed to failure and provides a simple three-step framework for making better investment Behavior (smart thinking), Process (smart habits), Organization (smart governance) . He explains why the search for alpha is destined to fail, the major role behavioral finance plays in so much wasted time, effort, and money, and, most important, how to avoid common mistakes and maximize your efforts.
You’ll gain a deeper understanding of what drives investment returns, how superstar investment managers generated excess returns in the past, and why strategies that worked in the past don’t necessarily make sense today.
Whether you’re responsible for generating revenue streams for pensions, endowments, or foundations; mitigating insurance losses; serving as an investment consultant; or any other institutional-level investing, Better Than Alpha walks you through the process of minimizing the impacts of behavioral biases and making decisions that create a higher probability of meeting your objectives―whatever they may be.
The concept of beating markets is just a lot of hype. Successful investors don’t find “alpha,” they find value―and that’s what this book helps you do.
Better Than Alpha provides the perspective, insights, and tools you need to retrain your focus away from searching for alpha and toward actions that produce superior investment outcomes.
Chris Schelling explains why strategies based on “beating the markets” are doomed to failure and provides a simple three-step framework for making better investment Behavior (smart thinking), Process (smart habits), Organization (smart governance) . He explains why the search for alpha is destined to fail, the major role behavioral finance plays in so much wasted time, effort, and money, and, most important, how to avoid common mistakes and maximize your efforts.
You’ll gain a deeper understanding of what drives investment returns, how superstar investment managers generated excess returns in the past, and why strategies that worked in the past don’t necessarily make sense today.
Whether you’re responsible for generating revenue streams for pensions, endowments, or foundations; mitigating insurance losses; serving as an investment consultant; or any other institutional-level investing, Better Than Alpha walks you through the process of minimizing the impacts of behavioral biases and making decisions that create a higher probability of meeting your objectives―whatever they may be.
304 pages, Hardcover
Published March 26, 2021
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Displaying 1 - 2 of 2 reviews
July 14, 2021
Better Than Alpha is a must read for any investment professional looking to expand their investment thought process. The book has an excellent flow: it is sometimes technical and feels like a textbook (i.e see equation 4.3..), just enough to put the reader in context - the author then swiftly ties the theory back to real life examples and ideas. It was a very eye-opening and refreshing read, from a highly qualified industry expert.
I highly recommend this book to anyone with an open-mind and a desire to challenge their current approach to investing!
I highly recommend this book to anyone with an open-mind and a desire to challenge their current approach to investing!
April 9, 2022
Great view of how to think about the term - Alpha.
This is a great book but personally, I think this book is more suited for Institutional investors and Fund managers than individuals ones.
Especially the last part which emphasized the better way to organize public or pension funds investment process and risk management.
So far, for individual investors, I think the second part about "the hierarchy of alpha" and how to interpret our own excess return is very useful and valuable.
This is a great book but personally, I think this book is more suited for Institutional investors and Fund managers than individuals ones.
Especially the last part which emphasized the better way to organize public or pension funds investment process and risk management.
So far, for individual investors, I think the second part about "the hierarchy of alpha" and how to interpret our own excess return is very useful and valuable.
Displaying 1 - 2 of 2 reviews