Active Management Vs. Passive: A Three-Club Headwind

Active Vs. Passive: A Three-Club Headwind

Few active managers are outperforming passive funds in the current market, and investors are wondering if this is a permanent state of affairs (spoiler alert: it isn’t!). Our research suggests relative returns between active and passive are cyclical, depending on the market environment. There are identifiable drivers behind the active/passive return cycle, and the three-club headwind facing active managers today will turn in their favor once again.

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