FCF Research | Pure Alpha: Evaluating Active Management in a Modern Way
This paper discusses how we apply active management and the common misconceptions around active and passive investing. We apply a framework to estimate the “pure alpha” opportunity of an active strategy. Our evaluation reveals that a quantitative active strategy may deliver a significant amount of pure alpha away from static passive exposures.
Vince (Qijun) Chen, Director of Research, Connect with Vince on LinkedIn