Morgan Stanley Tells Active Managers Adapt Or Die

Active management has been taking its lumps as of late. This has been subtly on display both on stage and off at the advisor-friendly Morningstar conference as for the last three years a growing passive voice and the increasingly polite reception to the “smart beta” concept that was at first harshly criticized. Even in these advisor friendly confines, it can be argued the passive voice has been growing.  Enter Morgan Stanley’s Equity Analyst Michael Cyprys. He sees a continued widening of the performance gap among active managers, but thinks the fear of the passive trend has extended past its reality….