BULLS & BEARS: Behind the mumbo-jumbo lie risky pension strategies
Let me introduce you to the hottest thing going in institutional investing (pension plans)-it’s called “portable alpha.” One salesman for a large money management firm hails this as a new era in investing: “The new paradigm rejects total return as the measure of a strategy’s worth. It instead holds steadfast to the principle that any strategy’s total return can be divided into a market return and (ideally) a net excess return. “The market return component is quantified as beta and…