Investment Insights Podcast: Changing dynamics of the active and passive debate

Chris HartHart_Podcast_338x284Senior Vice President

On this week’s podcast (recorded July 21, 2017), Chris provides some of the more interesting data points and perspectives that help shed light on this potentially changing dynamic.

 

Quick hits:

  • Just as stocks, styles, strategies, sectors, and industries go in and out of favor, so too should performance of active and passive strategies.
  • Passive investing might be peaking and future market conditions suggest a more favorable environment for active management going forward.
  • The incredible growth in the number of ETFs has created a strong headwind for active managers.
  • Correlations between stocks have been stubbornly high while the percentage of active managers outperforming has been below 50% since 2010.
  • The potential for inflation makes it increasingly difficult for markets to rely on the generosity of central banks and continued efficacy of monetary policy.  .
  • At Brinker we believe that both active and passive strategies play an important role in portfolio construction and asset allocation.

For the rest of Chris’s insight, click here to listen to the audio recording.

investment podcast (3)

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.

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