Tag Archives: active performance

Prediction for 2018: There Will Be Many Predictions

A calendar that offers a forecast for every day of the coming year is not uncommon in Chinese households.  I don’t often hear references to the calendar on most days. But every now and again I would hear my mom marvel, “Oh that calendar was right on for today!” In investing, there is also particular Read more […]

2017…Among the Sleepiest of Years

If 2016 was unremarkable, 2017 was downright sleepy…at least as far as equity markets were concerned. In 2017, the S&P 500 notched the lowest level of volatility in 27 years. Both dispersion and correlations were among the lowest levels in the same period. This is in spite of a year that was far from lacking Read more […]

Pockets of Active Achievement

The last 16 years have not been kind to active management. But that shouldn’t come as a surprise. Unless the laws of basic arithmetic change, the theoretical argument on the perils of active management is ironclad. SPIVA data offer solid evidence to back up theory. As the chart below shows, most active managers underperform most Read more […]

Playing the Loser’s Game

Forty years ago, Charles Ellis characterized active investment management as a “loser’s game.”  From the perspective of the mid-1970s, Ellis argued that since institutional investors had come to dominate the U.S. equity market, they could no longer generate market-beating returns by taking advantage of less well-informed amateurs.  Investment management had become a game played by professionals against other Read more […]