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

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

Rating:Maybe Active Fundsters Should Be Excited About President-Elect Trump Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, December 01, 2016

Maybe Active Fundsters Should Be Excited About President-Elect Trump

News summary by MFWire's editors

Though passive management has been on a roll for years, the results of the presidential election might change that.

Jonathan Golub
RBC Capital Markets
Chief US Market Strategist
RBC Capital Markets analyst Jonathan Golub, as highlighted by Teresa Rivas of Barron's, wonders if Donald Trump's victory might be a net positive for active asset managers. Golub sees active PMs, on average, applying various "tilts" to their overall portfolios, tilts that he sees as having been out of favor in recent years but perhaps coming back into favor under the incoming administration.

Golub sees active PMs net favoring smaller stocks, financial stocks ("active manager's largest overweight"), and stock fundamentals (like low price-to-earnings ratios). All of those tilts, he says, have swung back into favor since the election, and he argues that they could continue. On the flip side, he sees a Trump presidency possibly reversing the low-volatility, high-correlation trend that has contributed to perceptions that too many active PMs are index-hugging; if volatility goes up, Golub argues, that's "a more favorable backdrop for active managers." 

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
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. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use