The world is in the middle of a disruptive transitory phase, Joseph Scoby of Magnetar Capital observed. It is not just the transitions from video cassettes, hotels and taxis to Netflix, Airbnb and Uber. In financial services, a similar transition is taking place in how alpha is considered relative to beta. The opaque “closed hood” hedge fund model, at times loaded with hidden beta, is giving way to transparency and a differentiation in fees based on return type. Scoby says technology is democratizing opportunity, true alpha is harder to find and uncorrelated returns are a prized asset, one that is achieved...