# Mauboussin - alpha, tails, 


## https://hurricanecapital.wordpress.com/2015/02/01/links-michael-j-mauboussin/

## [Mauboussin on 4 alphas... +Jim Simons](https://macro-ops.com/jim-simons-and-the-four-sources-of-alpha/)

- [Looking for Easy Games](https://research-doc.credit-suisse.com/docView?language=ENG&format=PDF&sourceid=em&document_id=x745112&serialid=knrGGNw%2bo620toTTx96qBQ%3d%3d) How Passive Investing Shapes Active Management

> Small and unsophisticated investors should build passive portfolios with an emphasis on asset allocation and
> low costs. Sophisticated investors should seek active managers in asset classes with high dispersion. There
> are ways to assess money managers beyond past performance that may shade the odds in your favor.

> Active managers must constantly consider who is on the other side of the trade. Research shows that
> fundamental money managers who take a long view and are truly active can deliver excess returns. It is
> essential to identify a repeatable source of edge, and to align the investment process to capture that edge.

- [Animating Mr. Market](https://research-doc.credit-suisse.com/docView?language=ENG&format=PDF&source_id=em&document_id=806553770&serialid=gKFZkitZvbzsLDj6TpgBXjc%2fgN3nhE%2bNfm7%2f4i3xGfw%3d) Adopting a Proper Psychological Attitude

>  What’s key is that crowds are wise under some conditions and mad when any of
> those conditions are violated


> Remember the line from Seth Klarman: You are looking for cases where uniform belief has led to a
> mispricing of expectations and thus a way to make money. The Triple Crown contenders show this vividly.


complacency by Dalio [probably had a bit of an exaggerated effect on the pricing of assets](https://finance.yahoo.com/news/billionaire-ray-dalio-pulls-trigger-152805762.html)


⏎
## [WHO IS ON THE OTHER SIDE?](https://www.bluemountaincapitalmacro-ops.com/wp-content/uploads/2019/02/Who-Is-On-the-Other-Side.pdf)

> Behavioral inefficiencies may be at once the most persistent source of opportunity and the most
> difficult to capture. Many behavioral inefficiencies emanate from the psychology of belief
> formation and the psychology of decision making.

- Analytical

>  having more
> analytical skill, weighing information differently, updating views more effectively, operating on a
> different time scale, or anticipating a change in the market’s narrative


- Behavioural

> emanate from the psychology of belief
> formation and the psychology of decision making. It is essential to remember that these
> inefficiencies are generally the result of collective, not individual, actions

- Informational

- Technical

> Technical inefficiencies can generate excess returns for investors on the other side of forced
> sellers or buyers, on the correct side of securities perturbed by investor fund flows

## [Fat Tails and Nonlinearity](https://www.trendfollowing.com/whitepaper/D4114-FatTailsNonlinearityLMIS.pdf)



# Parents

* Michael Mauboussin