Issues in e industry
- Only 20% generate alpha, so this is one of the few industries where we sell a product and gets paid even when we don't deliver what we promise to the customer.
- hard to generate alpha every..
- Cust want active product for the alpha (We should charge only when there is alpha)
- Cust want the top alpha product (We create a product that is consistently top decile)
Many will say..
How to create a product that is consistently top decile?
- The average large cap mutual fund
- In terms of strategy,
No idea how realistic this is, but happy to hear some thoughts. Cheers