Active Quote by Eugene Fama

The problem that people don't understand is that active managers, almost by definition, have to be poorly diversified. Otherwise, they're not really active. They…

— Eugene Fama

As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any…

— Bill Ackman

I have become increasingly convinced that the past records of mutual fund managers are essentially worthless in predicting future success. The few examples of…

— Burton Malkiel

Active management strategies demand uninstitutional behavior from institutions, creating a paradox that few can unravel. Establishing and maintaining an unconventional investment profile requires acceptance…

— David F. Swensen

After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs, which means…

— Eugene Fama

It's easy to identify many investment managers with great recent records. But past results, though important, do not suffice when prospective performance is being…

— Warren Buffett

Everybody has a different strategy, but everybody agrees that active management does not beat the market.

— Tony Robbins

Fund investors are confident that they can easily select superior fund managers. They are wrong.

— John C. Bogle

I think there are probably too many hedge fund managers in the world, as well as active fund managers. The hedge fund industry is…

— Martin Gilbert

After taking risk into account, do more managers than you’d see by chance outperform with persistence? Virtually every economist who studied this question answers…

— Eugene Fama

Index funds have regularly produced rates of return exceeding those of active managers by close to 2 percentage points. Active management as a whole…

— Burton Malkiel

Most investors are pretty smart. Yet most investors also remain heavily invested in actively managed stock funds. This is puzzling. The temptation, of course,…

— Jonathan Clements