Smart beta indexes stay with a specific niche and their holdings typically don't rotate as
often as an active manager.
Not exact matches
Managers should take an
active interest in their younger workers — something small businesses are uniquely well - equipped to do,
as owners
often already have a more hands - on approach.
In a paper on countercyclical investing, Bradley Jones at the International Monetary Fund (IMF) points out that investors
often hire
active managers just after a period of outperformance, only to experience a period of subsequent underperformance based on where they are in the market cycle.3 Or after doing a tremendous amount of due diligence to hire
active managers, institutional investors might be forced to replace underperforming
managers, only to leave alpha on the table
as these fired
managers often outperform in subsequent periods.
Bonus features include an
active - screen main menu, an
often unintentionally amusing audio commentary track with Polish - born director Rafal Zielinski, and a pair of interview featurettes — a 10 - minute chat with producer Maurice Smith, who comes across
as less skeevy than some of his other credits (Flesh Gordon) might suggest, and a five - minute talk with production
manager Ken Gord.
Active money
managers often try to paint indexing
as an unsophisticated strategy that's only appropriate for beginners and small accounts.
These
managers often present themselves
as a third way, combining some
active bets with inexpensive, passive investing.
For many years,
active fund
managers and institutional investors have
often used a factor - based approach either to strategically construct portfolios or to tilt their portfolios toward well - known risk factors, such
as low volatility, value, momentum, dividend, size, and quality, to capture the factor risk premium.
As for
active managers, they
often buy and sell to make it look like they are doing something for clients, when frequently less activity would be in the best interests of clients.
In a year marked by record breaking gains, it is particularly important to measure the relative performance of
active funds versus the indices
as bull markets
often present challenging conditions for
active managers to overcome.
Tracking error, which is
often referred to
as the
active risk of the portfolio, measures how closely a
manager's returns track the returns of a benchmark index.
Given that
active managers trade more
often, it follows that taxable investors will incur accelerated capital gains
as a result.
As active managers try to provide superior returns, they tend to trade more
often and more aggressively than passive
managers.