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Righting the ship
Transforming active equity in a competitive world
Active asset managers focused on long-only portfolios of quoted securities, particularly equities, have been the global asset management industry’s bedrock for decades. Yet deep secular shifts in capital markets and asset management’s operating environment are reshaping investment opportunities. Many active managers of listed equities are finding it increasingly harder to find alpha.
Yet the death of long-only active equities is exaggerated. Many portfolio managers consistently provide net excess return across actively invested strategies, but such investors are in the minority. The number of asset managers who can extend such outperformance across their entire product range is exceptionally small. As rivalry intensifies in an oversupplied market, many asset managers are discovering that their slim number of quality investment capabilities will fail to subsidize a wider range of less demanded, less differentiated strategies.
Performance magazine issue 32, May 2020
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.