A review of the most recent literature published in CFA Institute’s Financial Analysts Journal (FAJ) suggests that the conventional wisdom is too negative on the value of active management. Read the full article:

K.J. Martijn Cremers, Jon A. Fulkerson & Timothy B. Riley (2019) 
Challenging the Conventional Wisdom on Active Management: A Review of the Past 20 Years of Academic Literature on Actively Managed Mutual Funds, Financial Analysts Journal, 75:4, 8-35

This article refers to following SFI research:

False Discoveries in Mutual Fund Performance: Measuring Luck in Estimated Alphas, by SFI Prof. Olivier Scaillet (UNIGE) et al.

Performance and Persistence in Institutional Investment Management and The Selection and Termination of Investment Management Firms by Plan Sponsors, by SFI Prof. Amit Goyal (HEC & UNIL) et al.

Institutional Investors and Mutual Fund Governance: Evidence from Retail- Institutional Fund Twins, by SFI Prof. Rüdiger Fahlenbrach (EPFL) et al.

Interested in more opportunities in active asset management? Visit our upcoming SFI Master Class in Lugano!