Enterprising Investor
Practical analysis for investment professionals

active management


Behavior of Crowds not Wisdom of Crowds

When behavioral crowds are roiling the markets, as they are now, best idea active equity has an excellent chance of outperforming.

EAM: How and Why AI-Powered Active Management Will Dominate Passive

For active management to acquire sufficient alpha to eclipse passive, a paradigm shift driven by new technologies and new methods is required. That's where Ensemble Active Management (EAM) comes in.

Top 10 Posts from 2023: The 10 Greatest Investors, ChatGPT, and the Active Management Delusion

Enterprising Investor's most popular posts of the year include contributions from Mark J. Higgins, CFA, CFP, Larry Cao, CFA, Michinori Kanokogi, CFA, and Yoshimasa Satoh, CFA, among others.

Active vs. Passive Revisited: Six Observations

Does it make sense to reframe the active vs. passive debate? Perhaps the question — active or passive? — is not the right one to ask.

The Active Management Delusion: Respect the Wisdom of the Crowd

"Neither the Financial Analysts as a whole nor the investment funds as a whole can expect to ‘beat the market,’ because in a significant sense they (or you) are the market."

ESG (In)Efficiency

Passive ESG investing has become increasingly active. It’s time for a rethink.

Actively Managed Funds Are Appropriate Options for 401(k) Plans

Actively managed funds can serve plan participants well.

Passive Funds and “Do No Harm” Are Not Synonymous

The notion that choosing active or passive will in some way lower fiduciary risk is unfounded.

Active Success: Investing Lessons from Odysseus

With his patience and preparation, Odysseus would have made a great investor.