Hedge Funds With High ‘Human Alpha’ Outperform Their Peers

Hedge funds vying for capital used to differentiate themselves with operational alpha, but these days, checking for operational best practices is a standard part of investor due diligence, making it something that is expected instead of a selling point. Human alpha could become the next big thing according to a report from Citi Prime Finance that found companies who invest in their employees consistently outperform those without such policies.

Human Alpha studies

“Numerous academic studies have demonstrated the connection between superior performance and an organization’s investment in its people,” says the report. Previous studies have shown that companies can increase their value by as much as $40,000 per employee and that IPO firms have a...