RT Journal Article SR Electronic T1 Practical Applications of A Conversation With Robert Litterman JF Practical Applications FD Institutional Investor Journals SP 1 OP 7 DO 10.3905/cfa.2014.1.006 VO 1 IS CFA A1 Robert Litterman A1 Cathy Scott YR 2014 UL https://pm-research.com/content/1/CFA/1.6.abstract AB A Conversation With Robert Litterman Robert Litterman Robert Litterman , Chairman of the Risk Committee at Kepos Capital , sat down with me for an open-ended interview during the 67th CFA Institute Annual Conference in Seattle. The resulting frank conversation spanned topics as diverse as market efficiency, big data and carbon emissions.For the average investor, alpha is in zero net supply, Bob tells us. When you deduct management costs, the result can be a negative drag on portfolio performance, he cautions.Another piece of advice Bob gives investors: Ask yourself, “What‘s the source of my returns?” The factors that your portfolio is exposed to are really what drive returns, he states.This Practical Applications report comprises excerpts from the interview, edited for clarity.