According to the latest S&P Indices Versus Active funds scorecard, over the last 15 years (ended December 2016) 82% of all U.S. funds were unable to beat their benchmarks, according…
Tag: active vs. passive
Index over Active Management Still Requires Discipline
The inevitable periods of underperformance often suffered by active managers—coupled with their relatively high fees—make index investing a more attractive option for many investors. This according to a recent Globe…
Greenblatt Blends Active and Passive Strategies in New Fund
Joel Greenblatt, managing partner of Gotham Asset Management, may have figured out a way to make active strategies appeal to passive investors, according to a recent article in Forbes. The…
Active Funds Perked Up in January
January was a good month for actively managed funds, says a recent Bloomberg article that states, “the majority of actively managed value funds in the U.S. and Europe outperformed their…
Mauboussin on Active Vs. Passive Management
A paper co-authored by Michael Mauboussin of Credit Suisse addresses important issues to consider in relation to the continued and increasing shift from active toward passive fund management. Those investors…
Investing Lessons from 2016 that Ben Graham May Give a Nod To
It’s the time of year when holiday party-goers lament their seasonal overindulgences and commit to “turning over a new leaf” on January 1st— promises to hit the gym every day,…
Jack Bogle on Indexing: "Math is Math"
Back in 1976 when John “Jack” Bogle started the first index fund, his goal was to “capture the overall market’s return at much lower costs than the stock picking fund…
Greenblatt Weighs in on Active Management
“Most people have a tough time sticking with active managers who underperform for a period of time. But of course, if you’re going to beat the market, you have to…
Are Value Investors Really "Valuation" Investors?
Even though there has been a lot of commentary around current high stock valuations against lackluster earnings growth for the S&P 500, it is “neither practical or precise” for an…
Active vs. Passive Results Linked to Market Cycles
Fees contribute heavily to the variance in performance among active and passive fund managers. A recent article in Investment News says that, according to Morningstar data, “higher fees have the…