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# Active Management and Information Ratio ## [A Quantitative Approach for Providing Superior Returns and Controlling Risk](http://cslt.riit.tsinghua.edu.cn/mediawiki/images/a/a7/Active_Portfolio_Management_-_A_quantitative_approach_for_providing_superior_treturn_and_controlling_risk.pdf) Richard C. Grinold, Ronald N. Kahn 2020 [Dispersion and Alpha Conversion](https://www.morganstanley.com/im/publication/insights/articles/dispersion-and-alpha-conversion.pdf) Michael J. Mauboussin, Dan Callahan How Dispersion Creates the Opportunity to Express Skill - 1st page [The fundamental law of active management](https://jpm.pm-research.com/content/15/3/30) Richard C. Grinold definition https://www.panagora.com/assets/JOIM-Active-Risk-and-Information-Ratio.pdf - [Alpha is Volatility Times IC Times Score](https://jpm.pm-research.com/content/20/4/9) https://web.stanford.edu/class/msande348/papers/Grinold_paper.pdf [Grinold and Kahn do their best. Grinold, 64, studied physics at Tufts](https://archive.fortune.com/magazines/fortune/fortune_archive/2003/06/16/344194/index.htm) ## Sharpe and Information https://en.wikipedia.org/wiki/Sharpe_ratio **The information ratio is a generalization of the Sharpe ratio that uses as benchmark some other**, typically risky index rather than using risk-free returns https://en.wikipedia.org/wiki/Information_ratio ## supplementary https://www.firstquadrant.com/system/files/0011+Thoughts+on+Grinold+and+Kahns+Fundamental+Law+of+Active+Mgmt.pdf # Parents * Leverage, Uncertainty, and Edge - F * Risk Management⏎
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