FYI: The active versus passive debate is as tired as it is old. Yet, the debate continues as ETF naysayers point out that the rise of so-called passive investing coincided with active managers’ underperformance. That argument isn’t without merit, but it also forgets that most stockpickers struggle with fleeting alpha. Maybe the new reality is that there’s just less alpha to go around.
David Bechtel of Stamford, CT.-based Barrow Funds disagrees. He says that this could be the year for “quality” or companies that have wide operating margins, low balance-sheet leverage, and high return-on-equity. Bechtel makes his case:
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2017/02/24/why-2017-could-be-a-stockpickers-year-according-to-one-fund-manager/tab/print/
