Low-Tech Active Management That Still Has an Edge
These managers still put a lot of emphasis on traditional techniques to beat the broad market.
When BlackRock announced the latest retooling of its equity funds in March, the executive hired to lead the effort said the era of equity portfolio managers working with a handful of analysts in isolation was over. Stock market efficiency and competition from super cheap passive and quantitative options make it difficult for that model to achieve sustainable outperformance, said Mark Wiseman, BlackRock's global head of active equities.
The way forward for active equity managers, Wiseman and BlackRock contended, is to have both quantitative and old-school fundamental teams under one roof, sharing information and techniques.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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