Why 2017 Will Be the Year of the Active Manager

The video discusses the shift from passive to active management in financial markets, emphasizing the need for aggressive strategies due to market volatility and political changes. It highlights the importance of performance in retaining clients and the potential for active managers to capitalize on market opportunities. The discussion also covers the impact of the Volcker Rule on liquidity and the challenges faced by passive funds in adapting to changing market conditions.

What factors have increased the pressure on hedge funds and active managers to adopt aggressive strategies?

• Stable market conditions

• Lack of competition

• Central banks and political events

• Decreasing customer expectations

How have customer expectations changed in recent years regarding money managers?

• Customers are indifferent to market changes

• Customers prefer passive management

• Customers are more demanding and expect better performance

• Customers are less concerned about performance

What potential impact could changes in the Volcker Rule have on the market?

• More active trading opportunities for hedge funds

• Increase in passive management

• Decrease in market liquidity

• Reduction in corporate bond market activity

What is a significant risk associated with passive management during changing market conditions?

• Over-reliance on stock picking

• Inability to adapt to new market trends

• Consistent performance

• High management fees

What opportunity does market volatility present for active managers?

• Opportunities to capitalize on sector-specific trends

• Increased reliance on passive funds

• Stable returns with minimal effort

• Reduced need for market analysis