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Alpha generation describes an Equity Investor’s ability or edge in producing superior equity returns via a unique investment and trading strategy.

The generation of Alpha in a Stock Portfolio refers to the ability of an Equity Portfolio Manager to generate excess returns. Alpha generation could be done by employing an investment strategy which the Manager has developed likely combining both Valuation techniques, quantitative or qualitative, and Trading strategies. The aim is to consistently achieve better returns compared to a reference Equity market, which could be the overall Market or a Sector. The ability to generate Alpha is used to describe a Manager’s edge or ability to beat the Equity markets. Managers seeking to generate Alpha will focus on investing in specific Stocks.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.