Saving Active Management A self-guided exploration : Ron Surz Click - - PowerPoint PPT Presentation

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Feb 17, 2023 363 likes •496 views

Saving Active Management A self-guided exploration : Ron Surz Click on any picture to open a related article. Ron@PPCA-inc.com (949)488-8339 Active Managers Have Lost $500 Billion in Last 3 Years S&P, Morningstar, Vanguard, etc. say

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Saving Active Management

Ron Surz Ron@PPCA-inc.com (949)488-8339

A self-guided exploration:

Click on any picture to open a related article.

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Active Managers Have Lost $500 Billion in Last 3 Years

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S&P, Morningstar, Vanguard, etc. say Active Managers Have Failed

Contents: 80% Losers, 20% Either Good or Lucky

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Watchdogs Have Been Outsmarted

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Gatekeepers Have Let in Way Too Many Losers

Losers Welcome

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How Losers Get In

Antiquated Useless Tools Pay to Play

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Antiquated Useless Tools

Indexes Peer Groups

Except for index huggers. an Index is NOT a benchmark. A benchmark is the return you could earn with a passive alternative. Biases: Loser, Classification, Composition, Survivor. Would you hire one of these losers? Insane for hedge funds (unique)

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Peer Group Classification Bias

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Replacing Antiquated Useless Tools

Indexes Peer Groups Custom Benchmarks Hypothesis Testing

Blends of passive indexes, using style or factor analysis. Evaluate SKILL, not style Test “Performance is good” against all the possible implementations of custom benchmark using portfolio simulator. Simulator

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Saving Active Investment Managers

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The Reward for Saving Active Managers

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