Bonds are very different from stocks, particularly when it comes to active management and it does not only have to do with odd personalities…. Active bond managers outperform their passive peers, a PIMCO Quantitative Research report noted. There are reasons for the divergence, the report noted, as well as reasons for concern regarding the passive takeover of investment markets. Active bond managers outperform their passive alternatives On a ten-year basis, actively managed bond funds outperformed their passive investment ETF peers, the PIMCO study shows. It was short and intermediate bond funds that outperformed their passive ETF investment competition most consistently….
Why (Odd) Active Bond Managers Outperform More Often Than Active Equity Managers
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
Comments are closed.