John Husselbee: Why active managers need to dismiss biases to generate alpha

As we have written in the past, the failure of certain very high-profile active managers should not cast a pall over the whole industry or give the passive lobby a free ride. But as long as we can avoid that reductive ‘active bad/passive good' narrative, anything that helps push up standards and encourages investors to look further than traditional approaches has to be positive. Given the amount of research dismissing active managers' ability to add value, it was nice to see a glass half full piece from Essentia Analytics in recent days. According to this analysis, active managers can ge...