What is your view on the challenge ETFs pose to active management?
I believe there is a balance between active and passive strategies.
As passive management grows, it provides opportunities to active management.
I am astonished by the rise of many simple smart beta strategies, even more when I see the world’s biggest allocators investing in them.
Smart beta are often “blind” short-term trading strategies with sometimes a rather low capacity.
This situation provides opportunities to active, fundamental managers in the market, as they can take advantage of the mispricing that is being caused.
Name: Michaël Malquarti
Title: Head of Manager Research and Alternative Investments
Company: Syz Asset Management
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