Understanding Alpha Dynamics
Paul explores the various sources of alpha in long-short hedge funds, emphasizing the importance of distinguishing between long and short alpha. He warns against the pitfalls of misinterpreting high net returns as true performance, highlighting that recent market drawdowns are largely due to underperforming longs in a bull market environment. Understanding how to effectively size and manage positions is crucial for capturing genuine alpha.In this clip
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Capital Allocators – Inside the Institutional Investment Industry
2022 Top Episode #3: Paul Enright – Inside Long-Short Equity Investing, EP. 264
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