PT - JOURNAL ARTICLE AU - G. Glenn Baigent TI - Is There Alpha? AID - 10.3905/jai.2001.318990 DP - 2001 Mar 31 TA - The Journal of Alternative Investments PG - 65--67 VI - 3 IP - 4 4099 - https://pm-research.com/content/3/4/65.short 4100 - https://pm-research.com/content/3/4/65.full AB - This article is an attempt to extend the intuition of Schneeweis and Spurgin by showing the “market based” factors that could be driving the value of α. To motivate this discussion, the author used a simple problem that is frequently discussed in introductory investment classes. Because Schneeweis and Spurgin have fully discussed the statistical characteristics, the approach taken herein is to examine the nonstatistical factors that could lead to being an inconsistent evaluator of performance. Although the conclusion is consistent with Schneeweis and Spurgin, it is argued that the mere existence of α suggests that it should not be used. That is, economic agents should behave rationally and eliminate mispricing so that it should not exist. In a way, it's like the “Salem witch-hunt”: the discovery of its innocence inevitably kills it.