Dispersion provides a measure of the potential
outperformance of active management and factor indices — any non-cap-weighted strategy.
BofA Merrill Lynch and S&P (SPIVA) have each recently reported
the outperformance of active management versus market - cap - weighted indices so far this year.
have each recently reported
the outperformance of active management versus market - cap - weighted indices so far this year.
Not exact matches
Performance May Move in Cycles — Not only does the
outperformance of active or passive
management often vary by asset class, it can also vary based on the market environment.
Active management and capital preservation are going to be the key methods
of outperformance.
Outperformance by a majority
of managers in a particular style is often followed by calls from the fund community to use
active management in that style.