What is 'alpha'?

Fund managers claim to have it. Performance fees are often based on it. But what is alpha, and does it really exist? Tim Bennett explains.

By
published
in Features
What is Alpha? - MoneyWeek Investment Tutorials - YouTube What is Alpha? - MoneyWeek Investment Tutorials - YouTube
Watch On

Fund managers claim to have it. Performance fees are often based on it. But what is alpha, and does it really exist? Tim Bennett explains.

Related videos What is beta?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Tim Bennett

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.

Latest