And, unfortunately for
the advocates of active management, dispersion remains at historically low levels.
Advocates of active management admit that only a minority of mutual funds will outperform their benchmarks, but they argue there is still a significant probability of success.
Not exact matches
While smart beta strategies can provide important benefits in improving returns, reducing risk and / or enhancing returns, we are not
advocating for smart beta to take the place
of active management.
This morning's Wall Street Journal interviews Peter Lynch, the legendary and erstwhile manager
of the Fidelity Magellan Fund, who, unsurprisingly, turns out to be an
advocate of active equity
management.
There is one point, however, on which
advocates of both passive and
active management can agree.
Rather than protect muppets against their human behavioral failures such as the inevitable chasing
of performance, Vanguard now
advocates practices supported at best by theory and not practice such as
active management.
The labour movement can talk all it wants to about the alternative
of a «big» CPP, but if it entails the kind
of active management that Coyne describes, it's hard to
advocate allowing the CPPIB to play the «fool's game» with even more
of our money.