Barron’s Quotes Council’s Schwartz in Article About Active Managers “Proving Their Worth”
June 30, 2023
Barron’s recently quoted Apurva Schwartz, a member of the council’s research task force, and a portfolio specialist with steering committee member Harding Loevner, in the Lauren Foster piece “Active Managers Are Proving Their Worth, as Index Funds Lag Behind.”
The article said that “Stockpickers can pop the champagne” as small and large-cap active managers had a strong start to 2023 according to Morningstar data, “challenging the conventional wisdom that index-tracking funds do better.”
Schwartz reminds readers of the many benefits of active management, which include allowing “investors to navigate complexity, customize portfolios, manage risks, capitalize on specific skills, or try to profit from market inefficiencies” as well as the fact that “active and passive management are critical and play different roles in a broader portfolio.”
Morningstar cited dispersion and the concentration of high-flying growth stocks like Nvidia, Tesla, Apple, and Microsoft as one of the reasons for active’s strong performance so far this year.
This builds off of the 2022 performance, where active U.S. equity fund managers posted their best year since 2009.