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Indexing (mostly) beats active management

While this is something we have known for quite some time, Charles Rotblut highlights a couple of great points from the most recent S&P Indices Versus Active Funds Report (click here to read his article). Namely, in aggregate, active funds fail to beat their benchmark over a 5-year period. This is not to say that active management does not have a place in a person’s portfolio, but as this report shows there are only certain pockets of inefficiency from which

The importance of the assumption hunter

The investment world has historically been driven by a number of ingrained assumptions which are heavy on opinion and light on facts. When talking about investing one’s hard-earned money, it is crucial to guide investment decisions based on fact and not some pundit’s opinion. This is no more apparent than in the majority of the investment industry, which is predicated on delievering outperformance from active management. Certainly, active