Michael Mauboussin: Here’s what active managers can do

The debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing an analogy with poker, he said the players who are leaving the game are the weaker players, “the rich people who don’t really know what they’re doing.” Indexers are free riders He said active managers have a more difficult job now than they did before…