FYI: I was recently asked to comment on Jason Voss’ CFA Institute article “Is Active Management Dead? Not Even Close.” The author claims that while most active managers fail to achieve superior risk-adjusted returns, it’s possible to identify the future winners by examining metrics such as active share. “Research shows a fund that consistently pursues a narrowly defined strategy, takes high conviction positions, and experiences considerable tracking error outperforms over the long-run.”
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-active-share-no-indicator-outperformance?nopaging=1
