Higher returns coming from high alpha in higher conviction stocks

The Debate

This week's debate considers high alpha fund management in UK equities

This week's Conjecture focuses on alpha fund management in the UK equities arena. Taking part in the debate were Bob Morris, senior fund manager of UK equities at HSBC Halbis Partners (UK), Leigh Harrison, head of retail funds at Threadneedle and Makis Kaketsis, director of UK equities at F&C Asset Management. Is 'alpha' just marketing speak or does it mean something? Leigh Harrison (LH): Higher alpha means higher conviction and in particular higher conviction in stock positions. So I see high alpha as referring to a fund that is focused on stockpicking with a shortlist of stocks and bigg...