Active Management – Take Down The White Flag
Behavioral Published in Pensions & Investment | February 2024
Written by Michael A. Ervolini
Active Management - Take Down The White Flag
Article Abstract
This article discusses several of the challenges facing active equity management including: the shift from active to passive equities, the emergence of active ETFs, and the downward pressure on active fees. It also offers hope from the potential to improve equity results with the help of stronger feedback. The new analytics described enable asset owners and allocators to have greater conviction in their decisions, while also allowing managers to become more self-aware and improve. For the full text click on the link below.
Three Key Takeaways:
1.
It’s time for equity managers to fight back by generating stronger results more consistently.
2.
Newer analytics now enable managers to become more self-aware and to improve deliberately. These newer analytics quantify skills and analytically describe investment processes, allowing managers to replace guessing with rigorous feedback.
3.
Managers using these analytics are already benefiting – by delivering their best results and maintaining assets and winning new allocations.
The ideas expressed on this website are developed and/or curated by Michael Ervolini. Mike has spent his entire 35+ year career leading efforts to improve and strengthen active management.
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The multi-trillion dollar active management industry is predicated on the idea that managers have skill – yet little is known about it – Who has skill? How is it measured? This website is dedicated to finding answers to the questions surrounding skill.
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