Active equity management explores different market inefficiencies with the goal of achieving better adjusted returns for investors. In order to achieve this goal, successful active investors need to build and maintain their information edge, insight edge, implementation edge, and conviction edge.

Following the Fundamental Law of Active Management, the theme of the book is to help investors improve the information coefficient, breadth, the transfer coefficient, and reduce trading costs to achieve better risk-adjusted returns.

Chapter 2 covers a variety of common data sources typically used in investment process.

Chapters 3-7 examine a wide variety of seasonal effects, economic and market indicators, technical signals, fundamental signals, and other signals useful to build investment skills.

Chapters 8-11 discuss signal construction, signal combination, portfolio optimization, management of portfolio risks and constraints, and dynamic factor timing to effectively improve information coefficients, increase breadth, and manage transfer coefficients.

Chapters 12-13 survey statistical arbitrage and other investment strategies that help investors further broaden their stock selection skills and apply them to other asset classes.

Chapter 14 discusses trading cost analysis, management of portfolio turnover, and trading strategies that help investors reduce trading costs.
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