Knowledge is Alpha

Alpha is important in that it is the measure of a portfolio’s return that is in excess of the market return after both are adjusted for risk.  If a fund returns more than what one might expect given its Beta (i.e., a measure of how much one can expect a fund's returns to move up or down given a gain or loss of its benchmark), it exhibits positive Alpha.  If a fund returns less than its Beta predicts, it shows negative Alpha.

At Bull Path, we pride ourselves on striving to generate a high level of alpha as we have done since our inception.  We employ a multi-faceted investment approach to constructing and managing our portfolios which includes developing deep “knowledge” of the companies we cover and reinvesting this knowledge over time.   We simply don’t stop covering (i.e., analyzing) companies once they have been removed from our portfolios, but instead we look to reuse themes over and over again, and some times in different capacities.  Simply put, we think of ourselves as an “Alpha generator.”