Definition for : Portable alpha
GLOSSARY LETTER
A fund management technique which seeks to Transfer to a portfolio of low Risk Assets the outperformance (Alpha) of another portfolio made up of a high Risk asset and put options on the Market index of this high Risk asset, structured in such a way as to capture only the Alpha achieved through the management of this second portfolio (outperformance)
(See Chapter 19 The required rate of return of the Vernimmen)
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