11. Risk Factors v. Alpha Factors part 4
M4 L1B 10 Risk Factors V Alpha Factors Part 4 V1
Alpha factors are proprietary
Alpha factors are less well-known by the investment community, because they're generated by in-house research to help the fund generate higher than normal returns. So alpha factors are said to be drivers of the mean of returns because they're used to help push a portfolio's overall returns higher than what would be expected from a passive buy and hold strategy.