active vs passive investing
Julia VanDeren shares some insights on giving presentations and writing cover letters; Ben Carlson, CFA, discusses how to determine which hedge funds to invest in; Mark Harrison, CFA, curates the best content on smart beta and factor investing; and C. Thomas Howard and Jason Voss, CFA, offer some advice on how to revive active equity, in the top Enterprising Investor Posts from March.
Collectively, active equity delivers no value to its investors and, in fact, extracts value from them. So what can be done to launch an active equity renaissance?
Active fund management is alive, thriving, and adding value across trillions of dollars of assets worldwide.
The end of the year is a good time to look back and take stock. What Enterprising Investor articles did readers find most compelling in 2016? The results are illuminating. Our top content runs the gamut from the granular — tightly focused, practice-oriented material on starting a firm and what to read to stay informed — to more "big picture" analysis on negative interest rates and the ongoing active vs. passive debate. Taken together, they reflect the currents at work in the investment management profession at both the system-wide and individualized levels.
Mark Harrison, CFA, provides a list of the most popular articles of 2016 from CFA Institute's Financial Analysts Journal and CFA Digest.
Highlights from last month include a critique of shareholder value maximization by Anjali Pradhan, CFA; a discussion of the distractions caused by vision-narrowing apps and dysfunctional networks from Mark Harrison, CFA; an analysis of the benefits of hiring a career coach by Julia VanDeren; and Daniel Goleman's take on the the key elements of emotional intelligence as reported by Matthew Borin.
The cold war between passive and active investing has heated up considerably in the last two years, writes Jason Voss, CFA. He offers more insight on this, as well as other picks in this week's edition of Weekend Reads for Investors.
As investors, we are faced with an overwhelming amount of data, analysis, and opinions, says Tadas Viskanta. Choosing a well-defined investment approach — joining an investing tribe — by definition, reduces the number of decisions we need to make. Also, minimizing the "paradox of choice" makes our lives more coherent and manageable.
Tom Brakke, CFA, says that due diligence in manager selection has become far too much of a standardized documentation process for advisers.
Gold, a bitcoin hack, and which Olympic events are the most "watchable," are just a few of this week's Weekend Reads offerings.