The only three real edges to generate alpha in investing
> Information edge, which is where you have more information or forward leading data on a stock or industry vs rest of the market. This is incredibly hard in large cap stocks today, but small cap and emerging markets are great places to fish if you have this
> Emotional edge, where you dont make emotional decisions driven by market movements. Volatility in the stock market are gifts for people with this type of edge. While the broader market moves based on emotions, you are able to hold on to logic and make decisions accordingly
> Timing edge, where you are okay with having a longer holding period vs everyone else. While some funds might become forced sellers due to fund constraints on concentration or sector exposure, having flexibility can become a source of alpha. This works both during downturns, where you can keep holding on to stocks through the bottom of a cycle, and during upturns, where you dont have to sell even if a great stock becomes too concentrated in your portfolio