Is It Time for Investors to Ditch Active Managers?

The video discusses the challenges faced by the asset management industry, emphasizing the need for restructuring due to its growth beyond capacity. It highlights the underperformance of active managers compared to benchmarks and identifies two main issues: excessive growth and diversification. The discussion suggests a reduction in industry size, with a focus on capacity constraints. The role of passive management is acknowledged as essential, alongside active management, to achieve investment objectives.

What is the significance of capacity constraints in the asset management industry?

What role does passive management play in the context of active management?