SHoF Director Bo Becker pays tribute to Michael Jensen, the pioneer behind modern "shareholder value" and the concept of Alpha.

Jun. 10, 2024

Jensen's groundbreaking research introduced "Jensen's alpha," a key measure of portfolio performance, demonstrating that most mutual funds underperform the market after fees. This insight fueled the rise of index-based management, leading to a surge in assets from $2.5 trillion in 2012 to $10.9 trillion in 2022 in the US, with similar trends in Europe.