As indexes are increasingly dominated by large companies, managers tout active strategies as a solution.
Big bets and letting winners run helped Danoff’s active equity fund consistently beat indexes.
Shifts coming at the portfolio construction and market levels mean allocators need to stay focused on their goals.
Both approaches have benefits, but the current market volatility has changed how allocators weigh cost and governance differences.
Much depends on an organization’s portfolio objectives.
Fund’s new investment model emphasizes active management over indexing.
Treasurer says the change will save the state $5 million a year in fees.
State treasurer expects the move to save the state about $5 million a year in fees paid to managers.