Loomis Sayles' Hamzaogullari: 'Passives are growing because most active managers are not active; they are cheating'

Active managers not delivering alpha

Aziz Hamzaogullari, manager of the £306m Natixis Loomis Sayles US Equity Leaders fund, has said many active managers are letting clients down by having a low active share.

The manager identified this factor as the key driver behind the passives boom, as active managers were simply not delivering the alpha their clients were paying for. "The reason why passives are growing is because most active managers are not active; they are cheating," he commented. Moody's: Passives will overtake active funds in US by 2024 In particular, he said the average active share of portfolios had been declining consistently over the last two decades, as many managers had become more focused on the short term. His own active share on the fund is 82.9% versus the S&P 500 (a...