Strategic Economic Decisions

Outperforming the Market - Legitimately

It's not the "Information" that counts;
It's a superior interpretation of it that counts.

Modern efficient market theory claims you cannot legitimately beat the market and add "alpha." After all, if everyone has the same data and information, then how could any one investor claim to be able to outperform others — except by being lucky or by possessing inside information?

Seductive as it is, this claim is incorrect as extensive research from Stanford University makes clear. For it is possible to add alpha by interpreting commonly available information better than others do. That is, superior inferences from the data can be identified. The Stanford work identifies three main strategies for doing so.

SED's Advisory Service has successfully utilized this logic for eminent clients worldwide for three decades.

Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information?

-T.S. Eliot