- Oct 5, 2014
- 1 min
Why true active management is good and trading is bad for your portfolio
The financial media and many academics like to bash "active" money management. We often read about how most fund managers do not beat benchmarks. We are of a different opinion. Most money managers do not beat the market because they are too closely invested like it. "True" active management should be "benchmark agnostic". Active Share is a simple but effective measure of how a portfolio manager is deviating from benchmarks. The attached paper shows how an average manager with
