In the Investment Europe Article: ‘Testing fund selector prisoners on game theory’ Jon Beckett discusses the risks of choosing active managers.
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“On empirical evidence alone, sales flows are telling us that the consensus already believes traditional alpha is a ‘zero sum game’ but also that ‘SmartBETA’ and portable alpha – through absolute return funds – may have potential.
However, what if we are looking at the active-passive choice all wrong, what if we are looking in the wrong places?”