Editor’s note: This is a reprint of a popular interview of Eric Falkenstein conducted by David Penn a few months ago. We thought you’d enjoy it this evening.
Click here to access this week’s Big Saturday Interview with Eric Falkenstein, author of Finding Alpha: The Search for Alpha When Risk and Return Break Down (Wiley Finance).
A few months ago in his Daily Battle Plan, Larry Connors highlighted a new book he’d just read called Finding Alpha by Eric Falkenstein.
Wrote Larry to his Battle Plan subscribers: “This weekend I got a chance to read a wonderful new book Finding Alpha: The Search for Alpha When Risk and Return Break Down by Eric Falkenstein.”
“The book looks at ways that alpha can be found and possibly more importantly the many ways that professionals fool themselves into believing they have alpha when in fact they don’t.”
“This book is not for beginners. Eric has a PhD but he does a good job of keeping things on a level that can be understood by most traders with a few years of experience under their belt.”
Eric Falkenstein is our guest this weekend for the Big Saturday Interview.
In part 1our interview, the second half of which is available by clicking here, we learn how Eric Falkenstein’s early work as a risk manager with a desire to manage portfolios came to understand the elusive nature of risk and the quest to beat the odds known as “alpha.” He shares with us his insights into what risk management is – and is not – and compares the differences between what it takes for the longer term investor to “find alpha” compared to the short term trader.
In addition to being author of Finding Alpha, Eric Falkenstein maintains a blog at Falkenblog.