Active vs. Passive - Small Caps

| June 10, 2018
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How about both?

The debate rages on as to your school of thought: buy and index and set it and forget it to obtain the average return of the index or allocate capital to active managers that are trying to outperform the index.

We say, how about utilizing both options.

Here is an example from Fuller & Thaler Asset Management:

Asset Class: Small Caps

Time Period: 20 Years Ending September 30,2016

Measure: Percent of 3-Year Periods When Median Manager Beat the Benchmark by a Hurdle Rate

Outcome: In the Small Cap space, the Median Managers Beat the Russell 2000 Index by a Hurdle Rate of 0.75% over 86% of the time.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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