Fascinating discussion this morning from Robin Powell. He points to a research note from Kings College where the authors surveyed active managers about how they were responding to the shift in favor from active to passive fund management over the past decade or two. But they also asked questions about how these managers invested their own monies.

Robin buries the lede in his discussion, but allow me to correct that oversight:

Active managers invest their own capital passively.”

Many of the comments from active managers were eye-opening, but none more than “All my own money is in index funds” topped only by “I wouldn’t invest in my own fund.”

The study mostly discusses differences between the bodies of knowledge active and passive investing are based upon; how the incumbent groups of players adapt to new themes and market interest. It is also noteworthy that “the Active investment community in

Keep reading this article on Barry Ritholtz - The Big Picture.

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