Norbert, thank you for the question. While this comment section is not designed for a detailed explanation, we do believe that the EAM approach itself will not be subject to alpha decay.

Dis-economies of scale for large portfolios will always be an issue, but two modest sized portfolios that are built based on the improved predictive accuracy of EAM should have no negative impact on each other (as long as the underlying managers are reasonably different).

Further, EAM can be applied to investment portfolios from virtually any standard benchmark (e.g., Russell 2000), or specialty benchmark (ESG), allowing significant breadth of delivery.

Final thought. Let's accept for discussion purposes that EAM will AT SOME TIME IN THE FUTURE suffer from alpha decay. Would that not still justify building EAM-based investment solutions today, considering that 1) traditional active has clearly failed, and 2) EAM has been shown to persistently outperform traditional active management?