This article covers a conference that tipped against the current wisdom. The conference participants talked about the advantages of hedge funds and active stock fund managers. Most participants seemed to agree that over the last few years, the vehicles haven’t delivered what investors expected. But they expect that investors will want these vehicles sometime in the future.
Ultimately, picking an investment manager or investment strategy is about understanding what you’re getting into and committing.
“The big picture is the strategy that makes the most sense for you is not only one that makes good sense, but one you can stick with, ” Greenblatt said. “The problem with active management, in general, is if you’re going to beat the market you have to do something different. You have to zig and zag differently.”
For now, most professionals agree the sentiment towards higher-cost investment options will continue to be negative for the the time being.
“The fact [this move to passive investing] has gotten so much press will help it continue. I think it makes a lot of sense for people who don’t understand the strategies they’re following. I think that goes for most people. I think to some extent there will be a continued move.”