“Business alpha – The confidence trick to liquidity”

Business alpha refers to the way a business model can create value for an investment firm. On the other hand, investment alpha relates to portfolio management decisions, and operational alpha is all about utilising better data and technology in investment strategy.

In an article in The DESK, Dr Paul J Alapat, Chief Product Officer at Acuity Knowledge Partners, highlights how business alpha offers the most comprehensive set of options for asset managers in the present day.

Extract from the article- “The focus on business alpha is a relatively new phenomenon…Asset management firms need to look beyond investment and operational alphas and exploit every source of competitive advantage to set themselves apart and prosper. In many ways, business alpha offers the most comprehensive set of options to sustainably generate this surplus and deepen an asset manager’s differentiation.”