This article by Eric Sorensen, Ph.D., PanAgora’s President and Chief Executive Officer, considers the future of active equity strategies and provides a perspective on the attributes that are required to succeed in active equity management.  The scope of this analysis includes equity managers that hold publicly-traded securities, seeking to outperform easily replicable passive benchmarks on a risk-adjusted basis.  With each of these portfolio holdings comprising only a very small percentage of the shares outstanding, such active equity management strategies render managers as price takers, and not price setters, insiders, or major holders of private equity.  Here Dr. Sorensen reflects on 30 years of experience and offers an historical view on the evolution of active management and the characteristics he believes define success today and for the future, including a likely increase in the diversity of approaches across the active investment arena and the importance of being able to access and leverage information.


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