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Opinion
Barry Ritholtz

If You're Such a Great Investor, Where's Your Alpha?

Beating the market once is hard enough. Doing it consistently is special.
A hard act to repeat.

A hard act to repeat.

Photographer: Jin Lee/Bloomberg
Corrected

Is alpha, the Wall Street term for market-beating returns, sustainable? Or is it a unique, statistical outlier, indistinguishable from random chance?

I have been thinking about this a lot, lately. The relentless drumbeat of negativity about hedge funds, of which I am admittedly a contributor, is the underlying motivation for this line of thought. It has sent me on a hunt for those managers who consistently create alpha.