Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Will Active Fund Managers Gain An Edge When Market Momentum Turns?

FYI: Providers of actively managed mutual funds encourage investors to ignore or excuse the overwhelming evidence that passively managed index trackers consistently, and by a significant margin, outperform them.

Active managers often use one of two basic arguments: Certain types of assets, such as shares of smaller companies or companies in emerging markets, are sufficiently under-researched on Wall Street that a good active manager, backed up by sound analysts, can beat index returns, or else that the way that passively managed portfolios are constructed leaves them at a disadvantage under certain market conditions.
Regards,
Ted
http://www.marketwatch.com/story/heres-why-you-shouldnt-dump-active-fund-managers-completely-2016-11-05/print
Sign In or Register to comment.