Alpha vs beta investing short-term indicators of alpha vs beta

Short-term indicators of alpha vs beta investing suggest alpha is exploiting earnings volatility from small caps, netting double-digit returns, while beta portfolios see steady but slower growth. But before I get into that, I want to use today’s Market 360 to explain what this subscriber is asking by describing what he means by asking about risk-adjusted capital gain potential. I’ll also show why it’s important to invest in these kinds of stocks, and I’ll even highlight one of the companies that came to mind when I originally answered this question. Learn more about the Sharpe ratio and how it can be used in conjunction with (or instead of) alpha to assess manager skill. Alpha vs beta investing sentiment surveys among asset managers found 62% expect alpha’s edge to widen in the next quarter, citing earnings dispersion and higher volatility premiums across equities.