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An example is a stock in a big technology company. Negative betas are possible for investments that tend to go down when the market goes up, and vice versa. There are few fundamental investments with consistent and significant negative betas, but some derivatives like equity put options can have large negative beta values.
Investments with a high beta value are often called "beta investments", as opposed to "alpha investments" which typically have lower volatility and lower returns. Separating returns into alpha and beta can also be applied to determine the amount and type of fees to charge. The consensus is to charge higher fees for alpha incl. The topic has received increasing levels of attention due to the very rapid growth of the hedge fund industry, where investment companies typically charge fees higher than those of mutual funds , based on the assumption that hedge funds are alpha investments.
Following this paper, several groups of academics such as Thomas Schneeweis et al. Following this, a paper has discussed whether investable strategies based on such factors can not only explain past returns, but also replicate future ones.
Traditional betas can be seen as those related to investments the common investor would already be experienced with examples include stocks and most bonds. The definition of alternative beta in contrast requires the consideration of other investment techniques such as short selling, use of derivatives and leverage - techniques which are often associated with the activities of hedge funds.
The underlying non-traditional investment risks are often seen as being riskier, as investors are less familiar with them. Viewed from the implementation side, investment techniques and strategies are the means to either capture risk premia beta or to obtain excess returns alpha. Whereas returns from beta are a result of exposing the portfolio to systematic risks traditional or alternative , alpha is an exceptional return that an investor or portfolio manager earns due to his unique skill, i. Academic studies as well as their performance in recent years strongly support the idea that the return from hedge funds mostly consists of alternative risk premia.
This is the basis of the various approaches to replicate the return profile of hedge funds by direct exposures to alternative beta hedge fund replication. There are currently two main approaches to replicate the return profile of hedge funds based on the idea of Alternative Betas: Risk, Returns and Investment Strategy. Added to Your Shopping Cart.
The book defines what Alternative Alternatives are, based on research and the following hypothesis: If the source (origin) of the risk lies outside of the financial. Alternative Alternatives: Risk, Returns and Investment Strategy [Sona Blessing] on www.farmersmarketmusic.com In the aftermath of the financial crisis, investors are searchingfor new access to music, movies, TV shows, original audio series, and Kindle books. .. Hardcover: pages; Publisher: Wiley; 1 edition (March 28, ).
Description In the aftermath of the financial crisis, investors are searching for new opportunities and products to safeguard their investments for the future. Riding high on the wave of new financial opportunities are Alternative Alternatives AA.
However, there is a dearth of information on what Alternative Alternatives are, how they work, and how they can be profited from. She launched and also manages and moderates Opalesque Radio.
The past 20 years in a longer perspective. Risk, Returns and Investment Strategy. Would you like to change to the United States site? Withoutabox Submit to Film Festivals. Request an Evaluation Copy for this title.
She is on the education committee of the Women in Hedge Funds Zurich; has been a guest lecturer on Alternative Alternatives at the Zurich University of Applied Sciences ZHAW and is also frequently invited to moderate panels and share her expertise as a speaker and author. There's a problem loading this menu right now. Learn more about Amazon Prime. Get fast, free shipping with Amazon Prime.
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