Originally published at CNBC | December 15, 2015
Reports of the demise of active investment management are widespread, with passively managed products surging in popularity. But while many market participants appear ready to write off the industry, we are actually on the cusp of a golden age for active investing.
This may seem counter-intuitive given that passive funds now account for about 17 percent of worldwide equity mutual fund assets, up from 10 percent 10 years ago. In the U.S., the pattern is more extreme. Last year even Warren Buffett, perhaps the ultimate active manager, lent his support to low-cost index funds. Continue Reading.