Is the End of History Passive?
12 Pages Posted: 3 Jun 2020
Date Written: January 20, 2020
A powerful investor trend towards passive over active management seems to have become the new normal in the investment industry. The passive “end of history” thesis has a kernel of empirical truth. Passivation, however, is an imperfect match to wealth management clients’ individual demand for capital preservation (stability), let-alone performance enhancement. Active management needs a more precise specification to deserve a role in client portfolios. A possible justification could be tackling the distinction between fuzzy assets (subjective and exposed to instability) vs. eigen assets (objective and stable).
Keywords: Active Management, Wealth Management, Asset Allocation
JEL Classification: G11
Suggested Citation: Suggested Citation