The Alpha Lifecycle

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Research Paper: The Half-Full Glass

While the eventual decay in alpha in the average position is destructive, it is not inevitable.

Picture of the Glass Half-Full Research paper from Essentia AnalyticsIn a supplement to our Alpha Lifecycle research, this paper shows that disciplined active managers who are able to exit positions at or near the peak of their alpha curve – typically a 6 month “window of opportunity” per position – can preserve more than 120 bps outperformance (net of fees), per year, vs index funds.

Download The Half-Full Glass to explore the substantial investment performance opportunity available to active managers over their passive fund competitors.

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