Negative alpha means the investment isn’t meeting expectations or lags behind market returns. For example, alpha of +5 can indicate that a stock is more likely to produce a higher return on investment ...

Alpha is paired with beta (β), the second letter of the Greek alphabet, which measures an asset’s volatility. In actively managed mutual funds and ETFs, alpha is viewed as an indicator of fund ...

Alpha and beta are two Greek letters that get used a lot in investing, but their meanings can be misunderstood. Alpha is generally used to measure how much an investment outperformed its benchmark.

What alpha measures is the return that can't be explained by stock market movements. If the market were efficient in economic terms, then the alpha of any given portfolio should theoretically be zero.

Generating alpha is our business, and it’s time we got back to work. — Read Portfolio Management in the Active Equity Renaissance on ThinkAdvisor.