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ETF Specialist

The Scripps National Spelling Bee and the Pursuit of Alpha

Stiff competition is affecting competitive spelling and asset management in curiously similar ways.

This ETFInvestor weekly update was originally sent to subscribers on May 29, 2015.

After I started (and finished) reading Larry Swedroe's "The Incredible Shrinking Alpha"[1] last night, I tuned into ESPN to watch SportsCenter's coverage of...the Scripps National Spelling Bee. Having been primed by what I had just read, I was struck by how neatly the evolution of this Super Bowl of spelling seemed to align with the concepts put forth by Michael Mauboussin and co-author Dan Callahan in "Alpha and the Paradox of Skill."[2] In this paper, the authors state that: