Published: June 7, 2017
To find investing themes based on high-alpha portfolios, we analyzed more than 150 approaches: tactical (active), strategic (passive), and professionally managed funds.
We used alpha as a filtering mechanism over 5 different time periods: 1, 3, 5, 7, and 10 years.
Portfolios were selected only if they beat the alpha of SPY (the S&P 500 ETF) by 2 percentage points over all five time periods.
We identify and discuss 5 investing themes that have generated high alpha over the past decade.
Alpha is a powerful measure of risk-adjusted return. But can it point us to some specific investing themes and ideas? This article will answer "Which portfolio recipes (i.e., asset allocation approaches) have beaten the S&P 500 over the past 10 years, and what investing themes are revealed?"
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