Anyone can clearly differentiate the difference between the Short Extension Strategies (CFAI text V4 P.246) & Alpha and Beta Seperation (CFAI text V4 P.261) ?
Short extention strategy: 130/30, 120/20 or 140/40. Basically, you buy 100 long, 30 short, and 30 short. Remember your beta is still 1. Manager has little bit of opportunity to leverage while beta is still 1. Alpha/beta: Here you are buying an index or future to get the beta while alpha is provided by market neutral product (100 long, 100 short. beta = 0). Also, you can have alpha and beta from separate sources.