FYI: We all know that indexing is cheaper than active management, in which a fund manager selects specific assets for investment. But the question is why has passive investing been so successful during the past few years? Asked differently, why has active management — especially since the financial crisis — had such a dismal run?
Theories abound — none are completely dispositive, but all have some merit in explaining the reasons for underperformance. Let’s consider each:
Regards,
Ted
http://www.bloombergview.com/articles/2016-04-27/why-active-investment-management-comes-up-short-barry-ritholtz
