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Alpha or Beta?

Challenges and opportunities for traditional active managers

Alpha or Beta?

 

Background

In this report , we look at the challenges and opportunities traditional active managers face as their market polarises between alpha and beta providers.

Our report argues that in order to remain competitive in the market, traditional active managers must now make a choice between becoming more efficient beta providers, differentiate through higher alpha returns or provide both types of return under one roof. Each of these options involves overcoming major strategic and operational challenges however, as the infrastructure required to deliver alpha or beta returns differs markedly.

Key findings

In this report, we outline the different capabilities required to deliver alpha and beta returns and consider the challenges firms face in specialising at either end of the market. We also examine the practical steps that traditional active managers can take as they respond to the opportunities of this polarising market.

For further information, download our publication Alpha or Beta? Challenges and opportunities for traditional active managers (PDF, 312 KB) 

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