Adding Alpha by Subtracting Beta
A Case Study on How Quantitative Tools Can Improve a Portfolio's Returns
Fundamental portfolio managers typically build their portfolios from the bottom up. That is, they identify stocks they expect to beat the market and combine them to create a portfolio. However, fundamental managers can leverage quantitative tools to help identify and lessen potential issues in their portfolio, while still maintaining their investment views and goals. In this paper, we'll use a "real world" portfolio to illustrate how quantitative tools can improve a portfolio's realized returns.
Chris Martin, CAIA, CIPM,
Director and Solutions Specialist