At Ten Cap, we don’t see ourselves at war with passive investments and/or their impact on the market. That’s not because we manage a non-core (alpha extension) investment strategy. It’s because we think passive and active approaches are complementary rather than competitors. To understand this perspective, it’s important to recognise what each type of investment strategy is intended to do. Passive investing is designed to replicate index returns, whereas active investing is designed to outperform a benchmark. As an active fund manager, is this unfair? Not really. It’s just how markets evolve.
