Rowan states active management has failed to beat the index 85% of the time for twenty years.
“If you look at the active management, active management has failed to beat the index 85% of the time for twenty years.”
Rowan states active management has failed to beat indexes 85% of the time over twenty years and will get harder.
“If you look at the active management, active management has failed to beat the index 85% of the time for twenty years.”
Rowan notes active equity managers failed to beat the market 93% of the time over twenty years.
“Here are people who have spent their whole lives becoming good investors, and they as an industry have failed to beat the market 93% of the time for twenty years.”
Rowan suggests active management is evolving from trading securities to adding private markets to public portfolios.
“Maybe the new form of active management is not the buying and selling of stocks and bonds, but the addition of private markets to public beta portfolios.”
Rowan attributes active managers' failure to beat indexes to market structure changes, not lack of skill.
“Most active managers have failed to beat the index 90% of the time for twenty years. I don't think it's a result of lack of effort or intelligence.”