Active management strategies can outperform passive strategies from "summary" of Institutional Investment Management by Frank J. Fabozzi
Active management strategies have the potential to outperform passive strategies in the investment management industry. This concept is based on the belief that skilled portfolio managers can make informed decisions to generate higher returns than simply tracking a benchmark index. By actively researching and selecting investments, managers aim to outperform the market and deliver superior performance to their clients. One key advantage of active management is the ability to react to changing market conditions. Portfolio managers can adjust their holdings based on their analysis of economic trends, company performance, and other factors that may impact the value of their investments. This flexibility allows active managers to capitalize on opportunities and av...
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