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High Alpha Briefing Note

German translation: Outperformance-Exposé

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21:20 Oct 28, 2002
English to German translations [PRO]
Bus/Financial / Aktien- und Rentenfonds
English term or phrase: High Alpha Briefing Note
Does anyone know what this is and how it needs to be translated to german, or if it has to be translated at all?
Teresa Schaeffer
Germany
Local time: 15:41
German translation:Outperformance-Exposé
Explanation:
I need to stress that this is a guess (hopefully an educated one...) - it's based on the meaning of "alpha" within an asset management context. Here's the definition I found in the Merrill Lynch Glossary (URL below):
"Measures the difference between a fund's actual returns and its expected performance, given its level of risk (as measured by its beta). A positive alpha figure indicates that a fund has performed better than its beta would predict. Alternatively, a negative alpha figure indicates that a fund has under-performed, given the expectations established by the fund's beta. A high alpha is generally considered to be an indication of good, active management."

Just if you wonder what "beta" is... (same source):
*Related to Mutual Funds*: Measures a Fund's relative volatility, as compared to a standard market index, such as the S&P 500. (By definition a market's beta will always be equal to one.) A Fund with a higher beta (more than 1) is more volatile than the market.

*Related to Equities*: Beta is used to measure the volatility of a stock's price relative to the general market. The S&P 500 index is used as a proxy for the general market. Betas are shown for all U.S. stocks where a five-year trading history is available. A stock with a higher beta (more than 1) is more volatile than the market and vice versa.

In somewhat clearer language, a high "alpha" means that the fund manager has achieved a higher performance than expected, given the market performance and the fund's "sensitivity" vs. the market. This is a feature that's often used as a selling point for so-called "alternative investments" (aka "hedge funds").

In summary, I believe what they're referring to here is a presentation/memo/outline explaining the concepts used to achieve such superior performance. This is something you should definitely double-check with your client - maybe you can use these explanations as a substantiated background.


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Note added at 2002-10-28 22:17:49 (GMT)
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Sorry - forgot to add that you may want to add the English term in brackets => \"Outperformance-Exposé (High Alpha Briefing Note)\"
Selected response from:

Ralf Lemster
Germany
Local time: 15:41
Grading comment
thanks for the additional information!
4 KudoZ points were awarded for this answer

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Summary of answers provided
2Outperformance-Exposé
Ralf Lemster
1Question:TonyTK


Discussion entries: 1





  

Answers


36 mins   confidence: Answerer confidence 1/5Answerer confidence 1/5
Question:


Explanation:
Could it be that one of the funds is called "High Alpha"? And that this is a "Kurzinfo" or "Kurzprofil" of this fund (containing a brief outline of dates, investment strategy, key data etc.)?



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Note added at 2002-10-28 21:58:26 (GMT)
--------------------------------------------------

I would\'ve posted my query in the white box where the question is - but I can\'t work out how to do it.

TonyTK
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 159

Peer comments on this answer (and responses from the answerer)
neutral  Ralf Lemster: Hi Tony - use the "Request more info from asker" link
7 mins
  -> Cheers. I'll see if I can find it.
Login to enter a peer comment (or grade)

55 mins   confidence: Answerer confidence 2/5Answerer confidence 2/5
Outperformance-Exposé


Explanation:
I need to stress that this is a guess (hopefully an educated one...) - it's based on the meaning of "alpha" within an asset management context. Here's the definition I found in the Merrill Lynch Glossary (URL below):
"Measures the difference between a fund's actual returns and its expected performance, given its level of risk (as measured by its beta). A positive alpha figure indicates that a fund has performed better than its beta would predict. Alternatively, a negative alpha figure indicates that a fund has under-performed, given the expectations established by the fund's beta. A high alpha is generally considered to be an indication of good, active management."

Just if you wonder what "beta" is... (same source):
*Related to Mutual Funds*: Measures a Fund's relative volatility, as compared to a standard market index, such as the S&P 500. (By definition a market's beta will always be equal to one.) A Fund with a higher beta (more than 1) is more volatile than the market.

*Related to Equities*: Beta is used to measure the volatility of a stock's price relative to the general market. The S&P 500 index is used as a proxy for the general market. Betas are shown for all U.S. stocks where a five-year trading history is available. A stock with a higher beta (more than 1) is more volatile than the market and vice versa.

In somewhat clearer language, a high "alpha" means that the fund manager has achieved a higher performance than expected, given the market performance and the fund's "sensitivity" vs. the market. This is a feature that's often used as a selling point for so-called "alternative investments" (aka "hedge funds").

In summary, I believe what they're referring to here is a presentation/memo/outline explaining the concepts used to achieve such superior performance. This is something you should definitely double-check with your client - maybe you can use these explanations as a substantiated background.


--------------------------------------------------
Note added at 2002-10-28 22:17:49 (GMT)
--------------------------------------------------

Sorry - forgot to add that you may want to add the English term in brackets => \"Outperformance-Exposé (High Alpha Briefing Note)\"


    Reference: http://www.newmlol.ml.com/help/glossary.asp
Ralf Lemster
Germany
Local time: 15:41
Native speaker of: German
PRO pts in pair: 4899
Grading comment
thanks for the additional information!
Login to enter a peer comment (or grade)




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