Using Portable Alpha to Enhance Return Efficiency

Portable alpha strategies transfer alpha from one asset class to another by combining hedge funds with futures. This edition of our Fiduciary Insights series, Using Portable Alpha to Enhance Return Efficiency, looks at how this feature enables such strategies to exploit opportunities in all asset classes. Since portable alpha products are designed to maximize return per unit risk, they can be useful tools in improving the return efficiency of an institution's total portfolio, as illustrate in building an "alpha pyramid."