Quoted: There are two forms of exotic beta. 1) Apply "normal" strategies to "exotic" assets like investing in Namibian and Mongolian equities, timber, shipping freight, wine, uranium, art, movies, violins or footballers. Or 2) apply "exotic" strategies to "normal" securities with new trading styles and finding arbitrages in traditional markets. Personally I prefer alternative strategies for any security ("normal" or "exotic") but then as a risk averse, conservative investor I am not prepared to speculate on traditional OR exotic beta. They are too hazardous for my risk tolerance. Alpha is safer.