Jim Picerno has some thoughts on how equity investing is increasingly a matter not of picking specific companies but of recognizing trends and making sure you ride the wave.
Yes, true active management talents exists and it's worth pursuing in some cases. But it's hard to identify in advance and it can be costly. Meanwhile, the idea that you can manage a portfolio of betas is catching on. One reason is the growing recognition that if you own a multi-asset class portfolio, which is sound advice, then much of the risk and return for the overall strategy is driven by the design and management of the beta mix. In that case, it makes sense to focus on the betas.