Re: Evaluating Managed Funds
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is there still positive alpha after evaluating on the 3-factor model?
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OK, I read the link you provided, and I found the 3-factor equation:
r - Rf = beta3 x ( Km - Rf ) + bs x SMB + bv x HML + alpha
I have a bachelor's in math from the Unviersity of Texas, a CFA designation, and an MBA from Wharton, and there's no way I'm going to try to solve this equation for alpha for the Superinvestors from Buffett's speech. If you can do it, please post the results here.
Perhaps I'm just a gullible slackjawed yokel or something, but I think Buffett's Superinvestors, Goldfarb's 10, Tilson's New Superinvestors, and some others that weren't mentioned in any of those lists (Olstein, Weitz, Dodge & Cox, Brandes, etc.) will beat the market over the long-term.
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