Focused active managers outperform generalists and passives - research

Report looked at period 2011-2015

Focused active investment managers have outperformed both generalist active funds and passive strategies over the past five years, according to a report by Northill Capital.

In a research paper, titled Nowhere to hide: Focused active asset managers outperform, the firm analysed the performance of over 5,000 active long only equity and fixed income strategies, with a total AUM of $14.2trn, over the five year period 2011-2015. Active asset managers offering a single investment strategy, where all professionals work within a single team and share a single research platform, ranked within the top decile for focus. The report found the most focused managers within US equities generated average anualised gross outperformance of 116bps relative to benchmarks, co...