Alpha = Pick the Right Stocks

According to new data analysis – the alpha generated by professional fund managers comes from one major source = research process.
Inalytics studied 752 portfolios, with at least three year performance data.
The average alpha was 308bps.
Stock research added on average 319bps while position sizing led to average alpha loss of 11bps.
Only 46% of participants delivered any positive alpha from sizing.
“Stock picking is the primary area in which managers demonstrate skill”
Source.