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Step 5: Manager Pickers

Figure 5-6


In the 2009 edition of Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment,75 Yale Endowment Chief Financial Officer David Swensen states, “Active management strategies, whether in public markets or private, generally fail to meet investor expectations... In spite of the daunting obstacles to active management success, the overwhelming majority of market participants choose to play the loser’s game.” Despite Swensen’s admonition, active manager selection and termination remains a common practice among public pension plans. Plan sponsors hire investment fund managers whom they expect to deliver above benchmark returns.

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...

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