
Positive Skew and Why Active Management Under-performs Passive Strategies
The story of active management under-performance is retold on a monthly, quarterly, and annual basis. And it appears that investors are listening, based on the wall of money that has flowed, and is continuing to flow, from active to passive funds. In this context, I mean "passive" not only to be index tracking funds, but also funds like those offered by Dimensional Fund Advisors, who utilize broadly diversified portfolios to implement their investment strategies. Much a...