In the debate over active versus passive investing, investors should measure performance over the long term, financial advisors were told at a Morningstar investment conference in Chicago. “Passive is a conscious choice not to outperform,” said Mark Finn, who runs the T. Rowe Price Value Fund. Active managers should have a strong commitment to fundamental analysis and focus on areas where opportunities are unearthed, he said, pointing to their investment in Microsoft that they owned for multiple decades.
High correlation and low dispersion markets are difficult for active managers
Value-based active managers should not be judged on a one-year basis,...
