Albemarle unveils buy list of top funds for alpha

Albemarle Street Partners has compiled a buy list of 100 funds using its new screening tool ‘Alpha Quest', creating a rival to popular lists of funds already in the market.

This research tool aims to predict a manager’s ability to deliver alpha in the future by separating a fund’s performance into exposure to index beta, or the cost of capital, and returns above this – alpha. Dan Kemp, partner at the consultancy firm, said: “People often confuse alpha with outperformance, but it is actually the ability of a fund manager to add skill to the investment process. “Past performance is not a guide to future performance, but past alpha is a guide to future alpha. While market movements are unpredictable, investment skill is not.” Funds on the buy list must h...