The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:With Friends of Active Management Like These ... Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, July 7, 2015

With Friends of Active Management Like These ...

News summary by MFWire's editors

40 years ago Greenwich Associates founder Charley Ellis famously took active asset management to task for being, in game theory speak, a loser's game. Now Ellis is defending active management, except it's probably not a defense that fundsters will want to rely on.

Ellis just published a new article, "In Defense of Active Investing", which Morningstar's John Rekenthaler digs into in his latest "Rekenthaler Report". Rekenthaler finds Ellis' defense "unconvincing" and even wonders "whether Ellis sliding into satire."

"Active managers do set efficient security prices. They do help global markets to function smoothly," Rekenthaler writes. "But there's no particular reason why you need to own them."

Rekenthaler also counters one of Ellis' attacks, leveled against investors chasing five-star actively managed funds. (Morningstar, of course, issues the star ratings of mutual funds.) Rekenthaler argues that mutual fund investors' main performance-chasing pain comes from chasing hot asset classes, not from switching within funds in the same asset class. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use