Alpha and beta - There is always a connection

Within every alpha there is hidden beta. 

Within every beta there is a hidden alpha. 

If you cannot find the beta in your alpha strategy or the alpha in every beta, you are not working hard enough....

The largest investment mistakes associated with alpha strategies are assuming there is no beta in the excess returns. There is always beta risk, and not knowing where it is will be costly. The beta may only be in the tails of the distribution, or the beta may be associated with a specific regime. There are market and macro factors that drive almost every alpha generation strategy. You must look for it and accept that it will be part of the return generation process.

Similarly, for every beta strategy, there is a way to extract some alpha through the structure, execution, and timing of a trade. If you want market beta there are several ways to extract it from the market. For example, in fixed income a specific duration can be achieved through buying a bond or a barbell of two bonds. Both can have the same duration, but each will have a very different return profile. There is hidden alpha, or an opportunity to generate alpha in a beta trade.

Of course, there is the question of measuring beta and alpha. There is always potential alpha based on the measurement of beta risk. One man's benchmark creates another man's alpha. 

Alpha is also a function of the market regime. The market regime defines how much alpha is achievable. A strong alpha strategy may be only be present in a specific regime like a recession or low inflation environment. All alpha is conditional. You must find the conditions.