Collective Action

Active Management and Collective Action

An article in yesterday's FT (16/3/2015) on active investment management, versus passive, by Sophia Grene prompted some thoughts on the topic of "public goods". Passive management is where a manager is simply tracking an index whereas active managers are actually making their own investment decisions. Active management typically costs more to the investor, on the premise that more work is required to be put in by the manager, but they argue that it is justified because they can outperform the market. ...
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