Martin Leibowitz and Anthony Bova won the Bernstein Fabozzi/Jacobs Levy Awards for their article Gathering Implicit Alphas in a Beta World.
The award, which carries a $2,500 prize split between the authors, was given for the best article appearing in The Journal of Portfolio Management in the four quarterly issues that ended with the summer issue of 2007.
Mr. Leibowitz is managing director and Mr. Bova is vice president, both in portfolio analysis in the research department of Morgan Stanley, New York.
In their article published in the spring 2007 issue, Messrs. Leibowitz and Bova wrote about implicit alphas that can add to expected fund return and yet have a minimal impact on total fund volatility. In contrast to active alphas that presume superior investment skill and must be hunted, the implicit alphas are passive (and) can be gathered through the allocation process.
Three other articles were awarded a prize of $1,000 each, split by their authors, as outstanding articles appearing in the journal over the same period. The winners were selected by voting of subscribers to the journal. The annual awards are funded by Jacobs Levy Equity Management Inc., Florham Park, N.J. Barry B. Burr