Raj Moorthy: Go Where The Alpha Is

Notes of Advantage Alpha Capital’s Raj Moorthy from the 2020 SohnX San Francisco Conference. See the full coverage here. Raj Moorthy of Advantage Alpha Capital What happened to alpha Erosion in long short Narrow strategies Can’t continue doing what everyone is doing Go where the alpha is Find the inefficiencies Found it in small cap Most investors know this Most share of capital is in mid and large caps 2 constraints of small cap Illiquidity, hard to buy and sell at scale Extreme volatility How to exploit Dispersion in quality and returns EBITDA margin as a proxy for quality Filter…