Blitz: Top long/short equity managers face high alpha prospects from ETF flows
Adam Blitz · Adam Blitz – Inside Hedge Fund Allocation (Capital Allocators, EP.17) · Jul 17, 2017 · at 49:23
Adam Blitz, CEO and CIO of Evanston Capital Management, discusses how passive ETF investing creates dislocations for top fundamental stock pickers.
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“For the 10% who are really good though, we just think that the distortions between individual stock prices and their fundamentals is just going to continue to grow because it's going to be influenced by ETF flows and index flows and things like that, and so fundamentally we think there's going to be Great opportunities. The cost for that is going to be higher volatility, though, because there's going to be noise in how stocks are priced. So, long way of saying we think long short equity has prospects for very high alpha going forward among the top managers, probably with higher volatility than it's had historically.”
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