Proponents of active management strategies maintain that funds tend to beat indexes when markets are in a downturn, but that hasn’t happened this year, according to Morningstar research that’s cited…
Tag: active vs. passive
Picking An Active Vs. Passive Fund
Instead of building their own portfolio, many investors prefer to invest in dividends via mutual funds, leading them to decide between an actively managed fund or a passive (index) fund.…
Studies Suggest Active Management Could Thrive
An article in Financial Advisor discusses two new studies: the first from PGIM Investments, which echoes what might become the conventional investment wisdom for the near future: selective active management…
Active Managers Rarely Add Value Says Head of Public Pension Fund
The head of CalSTRS, the second-largest public pension fund, said in a recent interview with CNBC that active managers rarely add value after fees. Here is a summary of comments…
In a Turbulent Year, Active Managers Struggle to Prove Their Worth
Although traditional money managers have long argued that they would prove their value in the next downturn, it looks like 2020 will “end up as another muddled year for active…
The Different Shades of Active Management
Active management deserves all the criticism it gets. After all, over 80% of equity managers underperform their benchmarks over the long-term and active managers charge vastly higher fees compared to…
Active Underperforms Passive on Risk-Adjusted Basis
A recent article in Advisor Perspectives outlines new research findings showing that actively managed funds underperform their benchmarks on a risk-adjusted as well as an absolute basis, and the findings…
What the Active vs. Passive Debate is Missing
As the active versus passive debate continues, relative performance is only a small part of the discussion according to a recent CFA Institute article that outlines three questions that both…
It's a Great Time to Be an Active Manager
One prominent asset manager says that dominated of today’s market by passive funds and quantitative strategies is creating opportunities for his actively managed funds. This according to an article inInstitutional…
Bill Miller on Outperformance in Era of Indexing
In a recent podcast interview, Miller Value Partners founder Bill Miller shared insights on market trends. Here are some highlights of the interview: “I think it’s always difficult to outperform,”…