Quantitative investing

Active management

Active management is an investment strategy that diverges from a market-value-weighted index, often involving regular transactional activities.


Unlike passive investing, active management seeks improved outperformance relative to the market after accounting for costs. Delving into the realm of factor investing essentially means adopting an active strategy against a broad market-weighted index. However, it's important to differentiate between factors with positive premiums, like the low volatility anomaly, and those with negative premiums.


See also

Factor investing Evidence-based investing Passive investing


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