Better Than Alpha
Three Steps to Capturing Excess Returns in a Changing World
『Better Than Alpha』の概要
"Better Than Alpha" revolutionizes investing beyond market-beating returns. Christopher Schelling's three-step framework - behavioral alpha, process alpha, and organizational alpha - has transformed institutional investment strategies. Endorsed by the CFA Institute, it reveals why smart thinking trumps market chasing in today's financial landscape.
『Better Than Alpha』の主要テーマ
- alpha generation
- portfolio construction
- active management failure
- factor investing
- benchmark selection
『Better Than Alpha』の名言
Alpha-that magical excess return above market performance-has become the holy grail of investing.
The mathematical reality of alpha is sobering-it's zero-sum across markets.
Critics called it "unmanaged," "socialist" and "un-American"-Bogle's vision revolutionized investing.
The more investors seek to exploit inefficiencies, the more efficient markets become.
『Better Than Alpha』の登場人物
- Christopher SchellingAuthor and investment veteran
- Jonathan Bell LovelaceFounder of Capital Group and investment pioneer
- John "Jack" BogleFounder of Vanguard and creator of index funds
- Charles EllisInvestment professional and market commentator
著者について
『Better Than Alpha』の著者について
Christopher M. Schelling is the author of Better Than Alphα: Three Steps to Capturing Excess Returns in a Changing World and a seasoned institutional investor specializing in private markets and alternative investments. With over two decades of experience, he serves as Managing Director of Private Investments at Caprock, a wealth management firm overseeing $8.8 billion for ultrahigh-net-worth clients.
Schelling’s expertise stems from allocating nearly $7 billion across hedge funds, private equity, and real assets while evaluating over 4,000 investment firms, giving him unique insights into capturing alpha in evolving markets.
A contributing columnist for Institutional Investor, Schelling bridges academic rigor with practical strategy, holding an MBA from the University of Illinois-Chicago and a master’s in financial markets from the Illinois Institute of Technology. His CAIA® designation further underscores his authority in alternative investments. The book distills his proven framework for identifying outperforming managers and navigating complex market cycles, reflecting his career-long focus on aligning investor goals with actionable methodologies.
Better Than Alphα merges Schelling’s institutional pedigree with accessible guidance, offering a roadmap refined through his roles at Texas Municipal Retirement System and Kentucky Retirement Systems. His work has influenced family offices and pension funds alike, cementing his reputation as a trusted voice in modern portfolio strategy.
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この本に関するよくある質問
Better Than Alpha challenges traditional investing strategies focused on beating markets ("alpha") and advocates for a three-step framework prioritizing smart behavior, disciplined processes, and effective governance to achieve superior returns. It emphasizes behavioral finance insights, critiques market myths, and offers actionable steps for institutional investors to align decisions with long-term objectives.
This book is ideal for institutional investors, fund managers, and finance professionals overseeing pensions, endowments, or insurance portfolios. Individual investors seeking to refine their strategies with behavioral finance principles and structured decision-making will also find value, though the content leans toward institutional applications.
Yes—it provides a fresh, evidence-based perspective on investing, debunking alpha-chasing myths while offering practical frameworks for improving outcomes. Its blend of technical analysis, real-world examples, and behavioral insights makes it a standout resource for professionals navigating complex markets.
Schelling’s framework focuses on:
- Behavior: Mitigating cognitive biases like overconfidence and herd mentality.
- Process: Implementing systematic habits for asset allocation and risk management.
- Organization: Establishing governance structures to reduce conflicts of interest and ensure accountability.
Schelling argues that chasing alpha is statistically futile for most investors due to market efficiency and fees. Instead, he advocates focusing on value creation through disciplined processes and behavioral adjustments, which offer more reliable paths to excess returns.
The book highlights how biases like loss aversion and recency bias sabotage decision-making. Schelling provides tools to identify and counter these tendencies, such as precommitment strategies and checklist-driven processes, to improve investment discipline.
While geared toward institutions, individual investors can apply its hierarchy of alpha concept—prioritizing tax efficiency, cost control, and asset allocation over stock-picking. The behavioral frameworks also help avoid common pitfalls like emotional trading.
Unlike populist guides (e.g., The Intelligent Investor), it targets professional money managers with advanced strategies for governance and institutional psychology. It complements academic texts by linking theory to practical, real-world execution.
Some argue its technical sections (e.g., equations, governance models) may overwhelm casual readers. Additionally, its institutional focus limits direct applicability for self-directed retail investors.
Amid volatile markets and rising passive investing, the book’s emphasis on process over outcomes helps professionals navigate uncertainty. Its behavioral insights are particularly salient during crises, when biases often derail strategies.
Schelling has 20+ years in alternative investments, managing $5B+ in institutional capital. He’s a columnist for Institutional Investor and former executive at HarperCollins, combining financial expertise with communication skills.
It stresses smart governance—like independent oversight committees and clear mandate boundaries—to prevent misaligned incentives. Schelling cites case studies where poor governance led to underperformance, reinforcing the need for structural safeguards.
