And since I believe in individual freedom, I don't have a problem if you know
the downsides of active management but decide the risk is worth it.
Not exact matches
Because, a) long - short mutual funds are expensive, b) the nature
of shorting a stock means getting limited upside but infinite
downside, and c)
active manager performance can wane over time as assets under
management increase.
Meanwhile, proponents
of active management suggest weaknesses in the passive approach, including the potential for
active management to protect «on the
downside» relative to index - weighted portfolios.
To be clear, I don't believe in buying any investment without
active management of the
downside risk.
Review
of current investment portfolio, access client's exposure to financial risk and recommendations
of active risk -
management strategies in order to protect
downside market exposure.