Category : Alts

Confronting Passification: Three Ways Forward For Active Managers

“Passification” is the process through which investment categories once dominated by active managers are being captured by index-linked strategies. To avoid being passified, active management business strategies can take three dimensions.

1. Focus on passive-resistant categories
2. Employ high “degree of investment freedom” strategies
3. Redefine the current passive-biased framework

Green Day on Broadway

The influence of alternative ideas and approaches constantly redirect and reinvent the mainstream. Innovations first introduced outside of the mainstream and, in many cases, defined as counter to it, become broadly adopted and eventually accepted as mainstream themselves.