The Incredible Shrinking Alpha

  • Accountant
  • CPA/ABV
  • CPA (CA)
  • CFP (US)
  • CGFM
  • CMA
  • CPA (US)
  • CVA
  • CA - ICAEW
  • CFA
  • CPA/PFS
  • ChFC
  • ACCA
  • FSCP
  • CASL
  • ChSNC
  • RICP
  • WMCP
  • CIPM
  • CBA/MCBA
  • FPAC
  • CA - Ireland
  • CA - Scotland
  • CPA - Ireland
  • CFIRS
  • CWS

Published: January, 2022

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Before starting this self study program, please go through the instructional document.

  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description

Overview

  • Four Themes
    4 mins
  • The First Asset Pricing Model
    7 mins
  • The Profitability/Quality Factor
    15 mins
  • The Pool of Victims is Shrinking
    24 mins
  • The Paradox of Skill
    32 mins

Course Description

In the world of investing, the Holy Grail is finding an investment manager who can reliably, persistently deliver alpha – a feat that seems to be of increasing rarity, as active managers in the aggregate continue to see outflows due to ongoing under performance. Even though Wall Street tries to keep alive the debate about the merits of active versus passive investing, a clear trend has emerged over the last several decades in which investors are slowly but steadily abandoning the hope of out performance that active management offers in favor of the certainty of earning market (not average) returns that passive management provides.The trend has been inexorable as investors become more and more aware of the low and declining odds that active management will outperform.

This CPE webinar, based on Larry’s book, The Incredible Shrinking Alpha,  co-authored with Andrew Berkin, will demonstrate that while it is possible to generate alpha (earn returns above risk-adjusted benchmarks) the odds of doing so are so low that it simply isn’t prudent to try. Larry will explain why the case against active management has been getting persistently stronger over the past 25 years.

The Webinar will cover four main themes: 

  • Academics have been converting what was once alpha into beta. 
  • The supply of victims needed to exploit has been persistently shrinking.
  • The competition has been getting increasingly tougher.
  • The amount of capital chasing a shrinking pool of alpha with fewer victims to exploit has been growing.

Larry will also explain why the trend toward increasing hurdles to the generation of alpha will continue, persistently lowering the odds of generating alpha, making active management a loser’s game.

Learning Objectives

  • To identify how academics have been persistently converting what was a source of alpha into beta reducing the sources of alpha.
  • To recognize how the shrinking pool of active investors is making it more difficult to generate alpha.
  • To recognize that while the absolute level of skill of active managers today is much higher than it was 25 years ago, it’s actually harder to generate alpha as it is the relative level of skill that matters (the paradox of skill).
  • To recognize how the increased supply of capital chasing alpha has negatively impacted returns.

Who Should Attend?

  • Certified Financial Planner
  • CFO/Controller
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Finance Director
  • Finance Pros
  • Senior Accountant
  • VP Finance
  • Young CPA

Course Qualification

Webinar Qualifies For

  • 1 CPE Credit of Finance for Certified Public Accountants (CPA-US)
  • 1 CPD Credit of Finance for Chartered Professional Accountant (CPA Canada)
  • 1 CPD Credit of Investment Planning for Personal Financial Specialist (PFS)
  • 1 CE Credit of Investment Planning for Certified Financial Planner (US) (Approval No. 290805)
  • 1 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
  • 1 CE Credit for Certified Wealth Strategist (CWS)
  • 1 General Credit for Accountant/Bookeeper
  • 1 CPD Credit for CA - ICAEW
  • 1 CPD Credit for Chartered Certified Accountants (ACCA)
  • 1 CPD Credit for Chartered Accountants - Ireland (CAI)
  • 1 CPD Credit for Chartered Accountants - Scotland
  • 1 CPD Credit for CPA - Ireland
  • 1 CPE Credit for Certified Government Financial Manager (CGFM)
  • 1 CPE Credit for Certified Management Accountants (CMA)
  • 1 PL Credit for Chartered Financial Analyst (CFA)
  • 1 CPE Credit of Financial Planning for Chartered Financial Consultant (ChFC)
  • 1 CPE Credit of Financial Planning for Financial Services Certified Professional (FSCP)
  • 1 CPE Credit of Financial Planning for Chartered Advisor in Senior Living (CASL)
  • 1 CPE Credit of Financial Planning for Chartered Special Needs Consultant (ChSNC)
  • 1 CPE Credit of Financial Planning for Retirement Income Certified Professional (RICP)
  • 1 CPE Credit of Financial Planning for Wealth Management Certified Professional (WMCP)
  • 1 PL Credit for Certificate In Investment Performance Measurement (CIPM)
  • 1 CRE Credit for Certified Corporate FP&A Professional (FPAC)
  • 1 CPD Credit of Finance for Accredited in Business Valuation (ABV)
  • 1 CPE Credit of Finance for Certified Valuation Analyst (CVA)
  • 1 CPE Credit of Finance for Certified Business Appraiser/Master Certified Business Appraiser (CBA/MCBA)

Additional details

  • Course Level :
    Basic
  • Credits :
    1
  • Instructional Method :
    QAS Self Study
  • Pre-requisites :
    None
  • Advance Preparation :
    None

NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

Presenter

About Presenter

Larry Swedroe

Others, Buckingham Wealth Partners

Since joining the firm in 1996, Larry Swedroe has spent his time, talent and energy educating investors on the benefits of evidence-based investing with enthusiasm few can match.

Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books: “What Wall Street Doesn’t Want You to Know” (2001), “Rational Investing in Irrational Times” (2002), “The Successful Investor Today” (2003), “Wise Investing Made Simple” (2007), “Wise Investing Made Simpler” (2010), “The Quest for Alpha” (2011) and “Think, Act, and Invest Like Warren Buffett” (2012).

He has also co-authored eight books about investing. His latest work, “Your Complete Guide to a Successful and Secure Retirement,” was co-authored with Kevin Grogan and published in January 2019.

In his role as chief research officer and as a member of the firm’s Investment Policy Committee Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations. He has had his own articles published in the Journal of Accountancy, Journal of Investing, AAII Journal, Personal Financial Planning Monthly, and the Journal of Portfolio Management.

Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives, The Evidence Based Investor, and Alpha Architect.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage. He has held positions at Citicorp as senior vice president and regional treasurer, responsible for treasury, foreign exchange and investment banking activities, including risk management strategies.

Larry holds an MBA in finance and investment from New York University, and a bachelor’s degree in finance from Baruch College in New York




About Company

Buckingham Wealth Partners

buckinghamadvisor.com

We are Buckingham Strategic Wealth, a growing organization of advisors, financial specialists and national thought leaders committed to delivering on the promise of true wealth management. As a Registered Investment Advisor, the essence of our approach is based on a pledge to act in the best interest of our clients, including individuals, businesses, trusts, non-profit organizations, healthcare professionals and retirement plans. We put the power of evidence-based investing and thoughtful, multi-faceted planning to work for our clients, helping them safeguard their financial futures and achieve their most important goals.

Buckingham Strategic Wealth is a registered investment advisor with the Securities and Exchange Commission.  Registration does not imply any level of skill or training.  Additional information about Buckingham Strategic Wealth is also available on the SEC's website at www.advisorinfo.sec.gov.  You can search this site by a unique identifying number, known as a CRD number.  Buckingham Strategic Wealth's CRD number is 143323. 

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Ratings and Review

4.3

44 Ratings

Excellent

21

Very Good

15

Average

7

Poor

1

Terrible

0

FC

Francis Celona, CFP (US), CPA (US)

Oct 28th, 2021

Very good overview of the why active asset management has become less valuable over the years

AS

Andy Smith, CPA/ABV, CPA (US)

Dec 14th, 2021

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