13 Tips about Active Management

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Classical buy-and-hold is really a dying concept. The notion that there are safe companies – like AT&T or IBM once were – is a real...
Active investors, as a group, must by definition underperform a strategy that passively holds a market portfolio of stocks, since active investors...
The best that can be said for the active management approach is that the dispersion of results between the best performing and worst performing active...
The only way to add value as an active manager is to be persistently different than the index. We tell prospective clients that if their main goal is...
We have periodic devil’s-advocate reviews of all our large holdings and a separate analyst is charged with presenting the negative case. It’s more...
We don’t have many rules, but when a stock is down materially relative to its peer group we assign another analyst to formally review it and then...
I remember calling on Phil Carret, the legendary founder of the Pioneer funds, and I asked him how he possibly could keep tabs on over 200 stocks in...
Put two rookie traders in front of the screen, provide them with your best high-probability set-up, and for good measure, have each one take the...
Active management is the traditional way of building a stock portfolio, and includes a wide variety of strategies for identifying companies believed...
One example of the difficulty in beating a passively managed benchmark or fund: The DFA Large Value Fund (passively managed) ranked #12 of 349* US...
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