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...

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