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The investing tide is shifting back towards active strategies

While the core tenets of passive still make sense, past performance is no guarantee of future results

The writer is chief investment officer at Man Numeric

It has become conventional wisdom in markets that the continued rise of passive investing is seemingly inevitable.

If active investors charge fees and pay transaction costs, they will on average underperform a passive benchmark. Over time, this return advantage has become so obvious that the dominant force in the US equity market today is passive.

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