Darius McDermott: Think active for the decade ahead

'There are reasons to be nervous about the largest companies in the index'

clock • 5 min read

It may be hopeful, or naïve, or both, but it is possible to make a more compelling case for active investment in the current environment, writes Darius McDermott

It has been a tough decade to be an active manager. The dominance of a handful of US technology companies have appeared to upended the basis of active management – the necessity for careful analysis and stock selection.  Big has been better, and as large companies have attracted more capital, there has been a virtuous circle. Passive funds have attracted flows, directing more capital to large caps, inflating valuations and delivering stronger returns for investors. While the phenomenon is more acute in the US market, it has been evident in many markets. In the UK, the strong perf...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Looking beyond the oil shock

Looking beyond the oil shock

'A few weeks ago, there was genuine reason for optimism'

Fahad Hassan
clock 27 July 2026 • 4 min read
What does a new PM and chancellor mean for investments?

What does a new PM and chancellor mean for investments?

'What is important is what happens over the long term'

Jasper Thornton Boelman
clock 23 July 2026 • 4 min read
SJP rebrands global equity income fund and reduces charges

SJP rebrands global equity income fund and reduces charges

Appoints Acadian as investment adviser

Patrick Brusnahan
clock 22 July 2026 • 1 min read