Are Index Funds Passive Aggressive?

“The index provider is becoming more of a stock picker,” said Rodney Comegys, head of investments for Asia Pacific at Vanguard Group (which oversees more than $3 trillion in primarily passive funds). “In some ways,” he says, “they’re replacing the active manager.” In a WealthManagement.com article from earlier this month, Bloomberg’s Andrea Tan delved into the surging presence of index funds. The article characterizes New York-based index compiler MSCI and others (including FTSE Russell and… Read More

Forget Asset Allocation, says Glenmede’s CEO

Stock-picking is still in vogue with Gordon Fowler, CEO of the $24 billion Glenmede Trust fund. A recent Barron’s article describes the process employed by his team. “Every morning, Fowler assembles his wealth advisory group simply to brainstorm about individual stocks and come up with smart client moves.” According to Fowler, deep analysis of equities makes more sense than picking broad asset allocations. “In this environment,” he says, “stock mispricings are bound to arise, and… Read More

Is the Next Peter Lynch or Warren Buffett Waiting in the Wings as Value Emerges

Bloomberg reports on the market shifts toward value as “returning to an era when stock pickers reigned,” drawing on comments by Bank of Montreal’s Brian Belski, who said “it’s a Warren Buffet or Peter Lynch-type world where you buy good companies and stick with them.” As Bloomberg puts it, Belski’s comments reflect that “the current climate recalls the 1980s” when Lynch’s record with Fidelity and Buffet’s success “rose to fame.” The article notes, “an index… Read More