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Article leaves out the fact that alpha (relative out performance) is just one component of investing success just as hitting is merely one component of successful baseball. If alpha has diminished over the years what other strategies impacted excess return? One or two paragraphs regarding these other strategies / factors might have lead the reader to the bigger picture. If alpha only contributes 6% to excess returns today, what's responsible for the other 94%?
Finally, a list of a few modern day funds that still do consistently provide outsized positive alpha would have been worthy of reporting. The chart in the article reveals that alpha still contributes 6% to the SD of excess returns. What active funds consistently out perform their peers with regard to alpha? There must be a few alpha dogs out there still.
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Article leaves out the fact that alpha (relative out performance) is just one component of investing success just as hitting is merely one component of successful baseball. If alpha has diminished over the years what other strategies impacted excess return? One or two paragraphs regarding these other strategies / factors might have lead the reader to the bigger picture. If alpha only contributes 6% to excess returns today, what's responsible for the other 94%?
Finally, a list of a few modern day funds that still do consistently provide outsized positive alpha would have been worthy of reporting. The chart in the article reveals that alpha still contributes 6% to the SD of excess returns. What active funds consistently out perform their peers with regard to alpha? There must be a few alpha dogs out there still.
What are your alpha dog funds?
https://www.kitces.com/blog/the-incredible-shrinking-alpha-what-was-once-alpha-is-now-five-factor-beta/