Quotes About Active management

most important distinction in the investment world does not separate individuals and institutions; the most important distinction divides those investors with the ability to make high quality active management decisions from those investors without active management expertise. Few institutions and even fewer individuals exhibit the ability and commit the resources to produce risk-adjusted excess returns.

An investor is a person who actively manages his or her own portfolio or account.

My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of derivative securities.

Having prospered as a merchant, Jesse was now worth $100,000—equivalent to nearly $3 million today—and employed about fifty people. When he reached sixty in 1854, he had begun to withdraw from active management of his business interests. His holdings included several tanneries near Portsmouth, Ohio, and leather goods stores in Wisconsin, Iowa, and Galena, Illinois.

Active management leads to lots of poor investor behavior. It sends people chasing after whoever has the hot hand at the moment.

I'm not at all overextended... I'm very, very hands-on.

Index investing outperforms active management year after year.

Paul Farrell, columnist for CBS Marketwatch and author of The Lazy Person's Guide to Investing: "So much attention is paid to which funds are at the head of the pack today that most people lose sight of the fact that, over longer time periods, index funds beat the vast majority of their actively managed peers.

I think it would be more beneficial to protection of species if we could focus our efforts rather than paint a broad-brush area that is so enormous that active management is very, very difficult.

There has to be active, hands-on management in concert with the manager to lead the organization and make sure that the standards that we set for the organization as a whole are being lived up to.

An active manager must overcome the drag of about 3.25 percent in annual operating costs. If the fund manager is only to match the market's historical 9 percent return, he or she must return 12.25 percent before all those costs. In other words, to do merely as well as the market, an active fund manager must be able to outperform the market return by over one-third or 34.1 percent!5

When S&P measured performance over a longer time period, the results got worse. Over 80 percent of large-cap managers and almost 90 percent of small-cap managers underperformed their benchmark indexes over a ten-year period through December 2015.

I think a very good system in a world with a lot of passive investors is one in which there are at least a few entrepreneurial investors, prepared to say what they think, prepared to propose a change in management, change in strategy, change in cost structure, capital structure.

Poor asset allocation, ill-considered active management, and perverse market timing lead the list of errors made by individual investors.

Finance theory teaches that active management of marketable securities constitutes a negative-sum game, as the aggregate of active security-selection efforts must fall short of the passive alternative by the amount of the fees, commissions, and market impact that it costs to play the game.