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Diversifying across alpha sources reduces reliance on any single edge and mitigates edge decay
  • By allocating capital to trend, reversion, sentiment, and fundamental strategies, a portfolio is less vulnerable when one edge erodes.
  • Nang stresses that “the more you diversify your sources of alpha, the more successful you are.”
  • This also spreads transaction costs and reduces the impact of any one strategy’s market impact.
  • The approach mirrors the “five‑pillars” framework he described earlier.
Rishi NangTitans Of Tomorrow01:43:56

Supporting quotes

We try to draw from all of these sources as many of them as we can. Rishi Nang
Diversifying our sources of alpha, our sources of timing. Rishi Nang

From this concept

Strategic Diversification of Alpha Sources

Nang outlines a five-pillar framework for building diversified alpha: trend, reversion, technical sentiment, fundamentals (value/ growth/ carry) and events/supply-demand.

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