Active management in a passive world

Active management in a passive world  By Rocco Pellegrinelli, CEO, Trendrating It’s a difficult time to be an active manager: according to S&P data, 83% of US and 86% of European equity funds underperformed their benchmarks over the last decade. In parallel with this underperformance, index-tracking funds are enjoying a moment in the sun: they already account for 40% of the $9tn U.S. market in equity mutual funds and exchange-traded funds (ETFs). The allure of uncertain – but potentially high – returns is slowly diminishing in favor of more assured (if lower) profits. No fund manager actively sets out to…