Revisiting the Active vs. Passive Decision - Moving Beyond the Data-Driven Framework

Over the last several decades, the debate around active versus passive investment strategies has consumed countless hours of investment professional time, involved endless analyses of troves of historical data, and, ultimately, led to untold gallons of ink spilled in articles and books. For some investors, undo focus on hiring and firing active managers in pursuit of elusive “alpha” has kept them from paying attention to the more important, higher impact components of investment program structure.