Liqian Ren - In Search of Modern Alpha (S2E8)
Flirting with Models
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The Importance of Systematic and Transparent Strategies
The idea of Modern Alpha is that you care about after cost. And we are going to do these systematic strategies, which is transparent and much less than 1% in terms of cost. We have lots of disclosure on the strategies that are behind each of the product. I think the actual distinction is smaller than people think, but the distinctions are still there. So for example, a lot of smart beta products have the rules, then they got hang up in the mental. There's no ongoing research. The change of the process itself is also well researched. It's also systematic. But that doesn't mean that an active portfolio is going to be just purely because the portfolio manager just makes a decision
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