Tag Archives: skewed returns
The Distribution of Alpha
Investment management is a zero sum game. The source of outperformance for a market’s outperformers is the underperformance of the same market’s underperformers. Properly measured, the weighted average sum of the winners’ gains is exactly equal (before costs) to the weighted average sum of the losers’ losses. This identity, along with the professionalization of the…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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The Skew Is Not New
Market observers have noted that the S&P 500’s performance so far this year has been dominated by a small number of technology stocks. This observation is certainly correct, although it’s fair to question the relevance of a statistic based on fewer than two months’ data. What’s more important is to bear in mind that this…
- Categories Equities, S&P 500 & DJIA, Strategy
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