The latest five-year data for domestic equity funds can be interpreted favorably by proponents of passive management.
Active management is superior by default because passive management is only theoretically possible.
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Investors have different styles of investing, but they can basically be divided into two camps: active management and passive management.
"We're not passive management with a few stock options, " says Huizenga.
It also provides the context to finally answer the question that has burned ever since index or passive strategies came into existence: Which is better, active or passive management?
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In the Financials sector, neither the active management of mutual funds nor the passive management of ETFs does a good job of identifying the best stocks the sector has to offer.
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The battered witness has made the connection between Lay's passive management, Skilling's unceasing efforts to make the numbers, and the systematic, fraudulent acts that contributed to the second-largest bankruptcy in U.S. history.
In a similar fashion, you can create a broadly diversified portfolio but choose an active management strategy instead of simply buying and holding to track the major indexes (which is passive management).
Looking ahead, Blackrock has diversified its business in such a way to benefit from the trend toward passive management and created many sources of revenues so that if investors want to shift among different strategies and asset classes, they can do all of this under one roof.
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There is, however, a strategy that combines a little active management with the passive style.
Indexes used in passive portfolios and for active management benchmarking should be broadly diversified and free-float capitalization weighted.
There is always debate among investors as to whether style investing using index funds or a style-based asset class fund is an active management strategy or a passive one.
Nevertheless, career management officers are worried that students remain passive rather than proactive in their approach to finding a job.
Zwan is a "passive investor who has no involvement in Forge's management, " says his lawyer.
When a portfolio manager for an index fund performs additional management services, the fund is no longer passive.
He built his fortune not by passive investing, but with a firm that started as a management consulting firm.
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This passive asset allocation strategy has a long history of outperforming most active management strategies that try to time markets.
If active management were a viable investment strategy, it should reliably outperform a purely passive index.
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So these managers eschew the passive approach to tracking an index in favor of a semi-active approach to portfolio management.
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Approximately 60 percent of the allocation is already managed in passive index-tracking portfolios and the remaining 40 percent is managed externally by active investment management firms.
Thus, the very person who rose quickly to the ranks of middle management because of an ability to follow orders diligently is now seen as too passive for an executive position.
Some states provide fill-in-the-black forms, requesting standard information such as the LLC's name, business purpose and type of management (such as membermanaged, where all owners take part in management, or manager- managed, where some owners manage while others act as passive investors).
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