Strategy labeling is very effective at clustering funds pursuing the same strategy and at identifying skilled active managers within these strategies. On the contrary, Style Box labeling is very ineffective since it spreads common strategies across clusters rather than concentrating … Continue reading
Why do some studies show superior performance for active managers and others do not? In order to unravel this enigma, it is important to understand the underlying assumptions as well as the institutional and economic realities affecting the link between … Continue reading
A heated debate broke out over the issue of Active vs. Passive management in Advisor Perspectives, and Dr. Howard was right in the middle of it. Article 1: Luck versus Skill in Active Mutual Funds Author: Robert Huebescher Publication: Advisor … Continue reading
Not everyone’s a fan. Fund managers complain that Morningstar’s version of investing style has become so powerful that it constrains stock picking and inhibits performance. “It’s a bad system with unintended consequences,” says Craig Callahan, president and founder of Icon … Continue reading
If you want to consistently maximize your investment potential, let your experts take off the shackles. It’s time to recognize that style boxes are not an asset class. Link to Article