Chapter 31. Short Selling in an Asset Allocation Framework—The Search for Alpha
Nils S. Tuchschmid, Erik Wallerstein and Sassan Zaker
31.1 Introduction 454
31.5 Conclusion 464
Introducing short selling in an asset allocation framework can enhance the performance of an investor's portfolio significantly. Short selling allows for separation of investments into beta and alpha exposure, which leads to better control of the asset allocation process. This chapter gives an intuitive example of how alpha–beta separation adds value and how it is implemented ...