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  • Ievgen Ishchuk thinks this is interesting:

Then it would take deviations from the benchmark because there are always two portfolios—alpha and the benchmark replication (beta). Dalio knew that in order to protect downside risk and promote alpha generation, he’d need to convince the World Bank to let him transition from traditional asset management practices, where a portfolio manager would peg his hedges and positions to a benchmark, to an active manager that could take a variety of alpha positions around the benchmark.

From

Cover of The Alpha Masters: Unlocking the Genius of the World's Top Hedge Funds

Note

alpha & beta port.