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DAILYALTS: Federated Makes Case For Truly Active Management

TedTed
in Fund Discussions
FYI: It can pay to be active,” according to Federated Investment Consulting, whose recent whitepaper makes the case against passive indexing and for “truly active management.” Conceding that passive strategies can perform “as well as the average,” Federated argues that portfolios constructed with little regard to benchmarks can outperform, particularly during periods like the one we appear to be entering
Regards,
Ted
http://dailyalts.com/federated-makes-case-truly-active-management/

Comments

  • Tampabay
    Federated’s whitepaper, studies suggest “truly active management” can “generate the opportunity for outperformance” even after fees.

    Sounds like smart people those Federated people:
    Glad I've never said that....tb
  • Tampabay
    In a nutshell:
    Most investors want to beat the average, and the only way to do that is through active management. Low-fee passive indexing inevitably results in average returns, minus a low fee. But active management, even with higher fees, can result in returns that greatly exceed the average, thereby resulting in market-beating returns – even after fees.

    amen...tb
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