The only source of (positive) returns is beta. And since ultimately risk premiums are the only sustainable source of investment returns, at the basis of every source of beta, there is one (or more) source of risk. If all sources of beta are properly taken into account, the only alpha remaining will be a negative alpha, resulting from inefficiencies in capturing the beta aimed for.
In Part 1 of this whitepaper, Transtrend demonstrates the healthy foundation of this basic thought and highlights its relevance for investment decisions.
In this whitepaper, you will learn:
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