{"version":"1.0","provider_name":"FDEF EN","provider_url":"https:\/\/www.uni.lu\/fdef-en","author_name":"FDEF EN","author_url":"https:\/\/www.uni.lu\/fdef-en","title":"Understanding Alpha Decay with Prof. Julien P\u00e9nasse","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"zWHNrlMt5K\"><a href=\"https:\/\/www.uni.lu\/fdef-en\/news\/understanding-alpha-decay-with-prof-julien-penasse\/\">Understanding Alpha Decay with Prof. Julien P\u00e9nasse<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/www.uni.lu\/fdef-en\/news\/understanding-alpha-decay-with-prof-julien-penasse\/embed\/#?secret=zWHNrlMt5K\" width=\"600\" height=\"338\" title=\"&#8220;Understanding Alpha Decay with Prof. Julien P\u00e9nasse&#8221; &#8212; FDEF EN\" data-secret=\"zWHNrlMt5K\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script>\n\/*! This file is auto-generated *\/\n!function(c,d){\"use strict\";var e=!1,o=!1;if(d.querySelector)if(c.addEventListener)e=!0;if(c.wp=c.wp||{},c.wp.receiveEmbedMessage);else if(c.wp.receiveEmbedMessage=function(e){var t=e.data;if(!t);else if(!(t.secret||t.message||t.value));else if(\/[^a-zA-Z0-9]\/.test(t.secret));else{for(var r,s,a,i=d.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),n=d.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),o=new RegExp(\"^https?:$\",\"i\"),l=0;l<n.length;l++)n[l].style.display=\"none\";for(l=0;l<i.length;l++)if(r=i[l],e.source!==r.contentWindow);else{if(r.removeAttribute(\"style\"),\"height\"===t.message){if(1e3<(s=parseInt(t.value,10)))s=1e3;else if(~~s<200)s=200;r.height=s}if(\"link\"===t.message)if(s=d.createElement(\"a\"),a=d.createElement(\"a\"),s.href=r.getAttribute(\"src\"),a.href=t.value,!o.test(a.protocol));else if(a.host===s.host)if(d.activeElement===r)c.top.location.href=t.value}}},e)c.addEventListener(\"message\",c.wp.receiveEmbedMessage,!1),d.addEventListener(\"DOMContentLoaded\",t,!1),c.addEventListener(\"load\",t,!1);function t(){if(o);else{o=!0;for(var e,t,r,s=-1!==navigator.appVersion.indexOf(\"MSIE 10\"),a=!!navigator.userAgent.match(\/Trident.*rv:11\\.\/),i=d.querySelectorAll(\"iframe.wp-embedded-content\"),n=0;n<i.length;n++){if(!(r=(t=i[n]).getAttribute(\"data-secret\")))r=Math.random().toString(36).substr(2,10),t.src+=\"#?secret=\"+r,t.setAttribute(\"data-secret\",r);if(s||a)(e=t.cloneNode(!0)).removeAttribute(\"security\"),t.parentNode.replaceChild(e,t);t.contentWindow.postMessage({message:\"ready\",secret:r},\"*\")}}}}(window,document);\n<\/script>\n","thumbnail_url":"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/3\/2022\/04\/understanding_alpha_decay_with_prof_julien_penasse.jpg","thumbnail_width":800,"thumbnail_height":600,"description":"\u201cPast performance does not guarantee future results.\u201d It is a common disclaimer used by asset managers, wealth planners and other finance professionals to inform their clientele of the uncertainty of investing. However, the textbook method of studying investment strategies doesn\u2019t account for the market effect that this often-used phrase embodies, what analysts refer to as \u201calpha decay\u201d, or the reduction in abnormal expected returns (relative to an asset pricing model). In fact, financial textbooks often state the opposite: if the excess returns associated with an investment strategy continue after the strategy has become public, then the strategy should remain profitable in the future."}