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Recent Good Links
Banker’s pay is deeply flawed (Financial Times) aka how to disguise beta as alpha.
In reality, there are only a few sources of alpha for investment managers. One of them comes from having truly special abilities in identifying undervalued financial assets. Warren Buffett, the US billionaire investor, certainly has it, yet this special ability is, by definition, rare.
A second source of alpha is from what one might call activism. This means using financial resources to create, or obtain…
