Active funds do beat passive strategies – but only in a few places
Cheap stock in placements, missing blow ups and trading around index inclusions all help active fund managers. But it only really works outside of the big stocks.
Missing the blow-ups is arguably the most important part of small caps investing. It is also keeping fund managers in jobs.
As money keeps going into ETFs and passive funds, one rare spot where the usually reliable index funds cannot match the active funds is in the small and mid-caps space.
Loading...
Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
