private information allows alpha but also has controls on its use
Just want to make the minor point that what you might call logical information can effectively be private too. The logical consequences of public information are not immediately available to all market participants. Better analysis should also be able to convey alpha.
Though note that it may be difficult to tell whether you have better (or even different!) analysis than everyone else, since you don’t know what they’ve concluded. (See my other comment.)
Agree. I actually deleted an earlier version of the comment that offered some thoughts on the problem of information in the evaluation of EMH. But that quickly good too complicated for the little though I was ready to apply.
Just want to make the minor point that what you might call logical information can effectively be private too. The logical consequences of public information are not immediately available to all market participants. Better analysis should also be able to convey alpha.
Though note that it may be difficult to tell whether you have better (or even different!) analysis than everyone else, since you don’t know what they’ve concluded. (See my other comment.)
Agree. I actually deleted an earlier version of the comment that offered some thoughts on the problem of information in the evaluation of EMH. But that quickly good too complicated for the little though I was ready to apply.
Didn’t stop me ;-)