Peter Kraus on Active and Passive Management

The video discusses the challenges faced by active fund managers, emphasizing the need for capacity constraints and the role of passive investing. It compares active and passive strategies, highlighting the importance of finding a balance. The discussion also covers market risks, regulation, and the future of active management, suggesting that active managers need to adapt to changing market dynamics to remain competitive.

What challenges do active managers face in outperforming passive strategies?

Why is it suggested that active managers need to enforce capacity constraints?

How does the conversation around investment performance shift from benchmarks to absolute returns?