From time to time, Hillsdale is in the news. Our partners often speak at conferences or other events, and our accomplishments are covered in the financial media.
“Are Alphas Becoming Smart Betas?” - Benefits and Pensions Monitor Article by Harry Marmer, CFA
Smart beta has become one of the most popular investment terms in the industry as a Google search for the term pops up 43.5 million results. However, what is smart beta?
To begin, we need to define what alpha is. Generally, investors casually refer to alpha, or value add/excess returns, as the return generated from active investment management. Alpha is defined as the difference in return between an actively managed portfolio and a passively managed portfolio or benchmark such as the S&P/TSX Composite Index. However, beta is harder to define.
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