To have genuine positive
alpha after costs, you need to be better than a strong majority of these pros who themselves are losing to the index, on average.
Not exact matches
The 2018 Rezvani Beast
Alpha that the automaker announced would
cost $ 200,000 when the car made its debut at the 2017 Los Angeles Auto Show isn't going to
cost that much
after all.
But it seems likely many will not persist, or their
alpha will evaporate
after fees and
costs are subtracted.
After trading
costs (turnover averaged 65 percent) the
alphas were on average 4.4 percent per year.
Using a sample of 2,076 actively managed US equity funds between 1975 and 2006, the authors found that total observed
alpha is consistent with the following breakdown: 75.4 % of the funds had a true
alpha of zero
after costs.