Advice for career change into finance

Water Cooler Careers
#21

Ummm no? Outperformance of other managers, maybe, but that’s not broadly advertised. Outperformance of the benchmark is, and the benchmark shouldn’t be affected by number of active managers until passive gets so big that arbitrage becomes viable for small and medium sized firms again.

Until then, “top” performers may be able to tout 2% over benchmark as a major selling point rather than a yawn.

Edit: Why is the forum automatically editing out quotes?

#22

Out performance is a zero sum game. Unless you think the passive gets taken advantage of somehow, active performance should be similar. Active performance will improve as the fees fall or they hire black swan