Beat the index by 4 points a year.
0.9 survived the factor lens.
4.0
Headline outperformance the brochure prints . pp per year
vs
0.9
What is left once every factor exposure is named
A friend forwarded me a fund deck last night. 16.5 pct a year for a decade against the index at 12.5. Four points of alpha, the deck said. I ran the same return through a factor lens. Most of the alpha turned out to be betas wearing a suit.