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In theory and in practice

I read with interest John Bogle’s letter in the Economist (“Fama not in the Vanguard”, November 2nd) in response to Eugene Fama sharing the Nobel prize for economics. Fama won the Nobel prize for his work on the Efficient Markets Hypothesis that proposes security prices fully reflect all available information, are therefore efficient and that it is

From ‘Alpha’ to ‘Smart Beta’

The Economist last month had a great article entitled “From alpha to smart beta” (click here to read the artice). With their tongue firmly pressed against their cheek, the Economist highlights a concern of every investor; what was my performance and subsequently how much am I paying for it. The fact of the matter is markets are a zero sum game. That is, for every person that makes a profit, there is another person with an equal and opposite loss. Hedge funds, the