Active vs. Passive Investing With CalSTRS' Chris Ailman

Chris Ailman discusses the shift towards passive equity investment, questioning the value of active management due to its inability to consistently outperform indexes. He highlights the importance of cost-effectiveness and suggests that asset management fees need to be reduced. Ailman also explores hedge fund strategies like global macro and trend following for diversification, and considers smart beta as a supplement to passive strategies.

What are the implications of high asset management fees according to Chris Ailman?

What does Chris Ailman mean by 'smart beta' and how does it differ from traditional index investing?