What the Heck Does Managing Alpha Mean?

Here’s another stupid example of how investment firms try to impress you with their wisdom…and then try to convince you to invest with them.

Look at this recent headline promoting a large mutual fund: “Managing Alpha with Active, Low Vol Strategies.”

Really?

How about explaining Alpha to a normal investor first?  Then please explain what “active, low vol strategies” are.

Even the definition of “Alpha” is confusing.

From Investopedia:  What is ‘Alpha’…Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index used as a benchmark, since they are often considered to represent the market’s movement as a whole. The excess returns of a fund relative to the return of a benchmark index is the fund’s alpha.

See what I Mean?

Here’s the “Financialsmatter” plain English definition of Alpha:  If the S&P 500 returns 10% and your portfolio returns 12%, the 2% difference is YOUR ALPHA.

There, wasn’t that easy?

This “secret language” used by Wall Street is meant to impress confuse you.

But you don’t have to fall for their tricks by trying to figure out what “Managing Alpha with, blah, blah,” means.

Enter in…Simplifying Wall Street in Plain English.

Every month we de-code what they’re hiding from you in easy to understand English.  And we give you a layman’s definition of all the “Annoying Acronyms” used.

Like any foreign language, when you understand it, you’ll make the most of it.

It’s easier than you think.

So why wait…go (HERE) now.

Invest confidently,