Friday, September 15, 2006


Pension Treasure-Seeking in Portable Alpha



The topic of portable alpha pops up in conversation a lot these days as defined benefit plan managers contemplate ways to enhance return.

What is portable alpha?

According to www.freedictionary.com, portable alpha is the strategy of "portfolio managers separating alpha from beta by investing in securities that differ from the market index from which their beta is derived."

Alpha itself is usually defined as a measure of excess return above expected return, adjusted for market risk. If alpha is positive, a money manager is thought to have done a good job.

Like any other investment, risk and expected return considerations are paramount. However, unlike more traditional choices, portable alpha strategies may employ additional leverage and/or investing in securities for which there is not always a ready market.

Learn more by attending the "4th Annual Portable Alpha Conference" on September 18 in New York City. Dr. Susan M. Mangiero, CFA will moderate a 2:00 p.m. panel entitled "The Trustee Perspective: Taking Us Into the Boardroom - Crucial Trustee Issues Associated With Portable Alpha." Panelists include:

Mr. Carlos Resendez, Plan Trustee
San Antonio Fire & Police Pension Fund

Mr. Bradley Imamura, Former Trustee
San Jose Federated City Employees Retirement System

Attorney Anthony Abboud, Of Counsel
Greenberg Traurig, LLP
Former Trustee, Illinois Teachers Retirement System

According to the brochure for the 4th Annual Portable Alpha Conference: Critical Issues During a Period of Change, "This conference is geared to institutional investors and investment professionals and examines three key themes associated with portable alpha that investors face: First the challenges and opportunities portable alpha presents to plan sponsor trustees and institutional investment professionals as seen through their eyes. Second, the emerging intersection between 'liability-driven investment strategies' and portable alpha. Third, key implementation challenges and risk management issues associated with portable alpha usage. We will examine each of these areas through a series of informative panel discussions and lectures."
posted by Susan Mangiero at 9/15/2006 12:06:00 AM