Although the markets “treated investors kindly last year,” a recent Morningstar article points out that most active funds lagged their benchmarks. Morningstar conducted a study of calendar-year total returns of…
Tag: active management
A Loser’s Game for Active Managers
“What is ironic is that active managers have been doing exactly what they needed to do to fight back, and it still hasn’t helped much. It might even be hurting,”…
Excess Returns, Episode 2: The Rising Bar for Active Management
The market has always been tough to beat, but the ability to investors to gain inexpensive exposure to factors like value and momentum has made the job of active managers…
Active Management's 'Genetic Defect'
“Active managers can produce persistent excess returns when it comes to their best ideas—but they only devote half of their capital to these investments,” according to a recent article in…
Active Managers are Flopping Where They Shouldn't Be
Although active managers argue that “inefficient investment areas like small-cap stocks and emerging markets are where they shine,” a new report from Willis Towers Watson found that they are missing…
The Rising Bar for Active Management
By Jack Forehand, CFA (@PracticalQuant) Active managers as a whole have always been pretty bad at their job. Depending on what data source you use and what time frame you…
Swedroe on Persistence in Active Investment Performance
In an article for ETF.com, Bam Alliance director of research Larry Swedroe summarized the findings published in the S&P biannual Indices Versus Active (SPIVA) reports which compare the performance of…
Vanguard: The Future of Active Management
A recent article in ETF.com offers Vanguard’s perspective on the history of active management and why it has a future. “Active management will survive, and maybe thrive, if it’s available…
Insights on Exploiting the Inefficiencies in Small-Cap Stocks
A recent article in Advisor Perspectives outlines an interview with Judd Peters, a portfolio manager of the Hotchkis & Wiley Small Cap Diversified Value Fund. Here are some highlights: Investment…
AQR Says Active Bond Fund Returns Juiced by Junk
Researchers at AQR Capital Management say that active bond fund managers are beating benchmarks by “loading up on junk bunds to juice returns.” This according to a recent Bloomberg article.…