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A chance, then, for active managers to prove their mettle.
The five years to end 2013 were very good for active managers, probably because small and medium-sized companies (those not in the big indices) did well.
For active managers, their fees, and correlated salary and bonuses, should correspond to their skills.
Mutual fund analysis has become more precise; and this is not good news for active managers.
It's a good proxy for active managers like Oberweis that play in that sandbox, and we actually applaud the move.
The market as measured by the S&P 500 has become the favorite benchmark for active managers over the past decade.
Similar(53)
St. Louis Cardinal's manager Tony LaRussa has the second-highest total of active managers with 78.
Fact is: For decades active managers of U.S. equities have badly lagged the S&P 500.
For example, active managers in the mid-cap value style increased their standing from 19% beating the index to 56% doing so.
The fact is that for decades active managers of U.S. equities have badly lagged the S&P 500, hence the index craze.
We've argued for years that it's hard for large-cap active managers to beat the market over the long term.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com