FYI: The long-term returns of active funds and their relationship to passive alternatives have been the subject of celebrated studies, famous bets, and endless debate. But returns are only one part of the picture; proponents of active investing increasingly emphasize their capacity for risk management, as opposed to return generation.
This paper examines the merits of such claims, along with how individual funds achieve higher or lower volatility than their benchmarks—and whether these tilts are persistent. Our focus is on the volatility of mutual funds available across Europe and the U.S. The general record shows that:
Regards,
Ted
http://us.spindices.com/documents/research/research-the-volatility-of-active-management.pdf
