The Contrarian Investor: The tipping point

The tipping point

The debate between passive and active fund management is infinitely more complex than a simple black and white answer.

I was recently asked to host an event about one of the great investment battles of our generation – active versus passive. Peculiarly for me though, I declined the offer. Quizzed by the event organiser about what I thought of the core challenge, I mumbled: “Well, it sort of depends, doesn’t it?” In reality, this debate is one of nuances, contingencies and circumstances. It is also a debate where opinions matter but facts are much more important. For example, if we look at market penetration by passive funds, US-based Morningstar commentator John Rekenthaler said: “Passive investing...