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Active Funds Are Blowing It By Riding Interest Rates All Wrong

FYI: Stock pickers love to pin their woes on the rise of algorithmic strategies and exchange-traded funds. But a team of quants argues they’ve just been caught flat-footed by slumping interest rates -- and there’s a fix.

Holding low-dividend stocks during an era of rock-bottom borrowing costs and reducing portfolio turnover help explain why active-manager performance has “collapsed” since 2018, according to Nomura Instinet LLC analysts led by Joseph Mezrich.
Regards,
Ted
https://www.bloomberg.com//news/articles/2019-11-08/active-funds-are-blowing-it-by-riding-interest-rates-all-wrong?srnd=markets-vp
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