Active Management

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Active Management

The opposite of passive management. The passive manager simply minimizes the tracking error of their portfolio and a well known index (e.g. S&P 500 index mutual funds). The active manager will deviate from the benchmark weights by (i) varying the weights from the benchmark weights on the securities; (ii) adding securities outside the benchmark or choosing not to hold securities included in the benchmark and (iii) time-varying asset allocation where weights on certain asset classes change through time. The goal of active management is to produce a return that exceeds the passive return with minimal risk.

Active Management

The practice of a money manager or a team of money managers making investment decisions on what securities to include in a mutual fund or portfolio. Sometimes active management exists within certain parameters; for example, money managers may only buy blue-chip stocks for a certain fund and growth stocks for another. The basic premise of active management, however, states that the managers can maximize the return for investors by buying or selling securities on a fairly regular basis. See also: Passive management, Indexing.
References in periodicals archive ?
The old adage of stock picking is in full force and requires some education and insight as not all stocks go up in a rising market.
There are interesting ideas across the GCC -- not just in UAE and Saudi but also in Kuwait and Qatar -- however stock picking is the key," Bhandari said.
Just buy an equity mutual fund and let the fund manager handling the fund do the stock picking for you.
For 2017 and 1Q18, WI has outperformed many widely used market benchmarks through good-old fashioned "stock picking".
1 for stock picking in the containers and packaging sector; Arren Cyganovich, ranked No.
The DAK Health operates its own stock picking with a total average of 1700 pallets.
Sector and stock picking key in GCC equity markets; GCC equity and credits are well-supported relative to other emerging markets; banks, cement and telecoms our preferred equity sectors in the GCC; we are neutral on GCC fixed income given expensive valuations; keep diversifying investment portfolios into US and Japan names.
We believe our stock picking criteria combined with what will likely take place in the United States over the next 5-7 years will be a delight to foreign investors.'
"Where stock picking has mattered very little [year-to-date], we think it will matter much more looking forward."
Parsons added: "At the helm since September 2002, Thomas brings his vast experience of stock picking to the table.
Recognition: The Wall Street Journal ranked Cooley third out of 95 candidates for his stock picking in the medical equipment and supplies category in the 2011 Best on the Street, a survey recognizing the top three stock pickers in 44 industry groups.
In 2007 the Hunter twins allegedly invented a fictitious "stock picking robot" and claimed on a series of websites that the highly sophisticated computer trading programme could identify stocks that were poised to rocket in value.