The case for active investing (by Threadneedle Investments) - Threadneedle is an active asset manager
The case for active investing (by Threadneedle Investments) - Threadneedle is an active asset manager. We believe markets are inefficient and use a disciplined investment process known as Perspective Advantage, which combines bottom-up with top-down analysis to exploit these inefficiencies. Our process has delivered consistent alpha over the economic cycle. Threadneedle CEO Campbell Fleming recently called for the debate on active versus passive investing to move from a focus on cost to a focus on value for money. From a recent interview: Stock markets are inefficient and an active approach can benefit investors both in terms of risk and return. Our track record for local authority [pension fund] clients demonstrates this: we added an aggregate £45m, or 8.7%, above index returns, after fees, over the lifespan of these investments. Synopsis: 1. The economic cycle drives stock correlation, which is the key factor influencing an active manager's performance 2. A passive approach is guaranteed to underperform after fees 3. Passive funds carry hidden risks 4. Academia is divided between proponents and opponents of market efficiency More: (VIEW LINK)
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