FYI: With the rise of exchange-traded funds, cheap commissions and a persistent Fed quantitative-easing policy that seems to perennially push stocks up in unison, active managers can’t get no respect.
But this won’t last forever. Trends play out in cycles in the markets, and sooner or later active managers will show their worth again.
So it makes sense to buy their beaten-down shares now, ahead of that shift. That’s what insiders at several active management companies are doing. Value investors I follow closely also have a keen interest in these names. This makes sense because they look cheap, the produce tons of cash flow, and they aren’t going away — despite the Rodney Dangerfield rap they get these days.
Here’s what might make active management come back into style.
Regards,
Ted
https://www.marketwatch.com/story/active-money-managers-are-now-despised-which-is-why-you-should-buy-their-stocks-2019-03-12/print
