90% of Active Managers underperform

New study by S&P shows about 90% of fund managers in the active equity sector underperform their benchmark.

It's becoming harder and harder for active managers to justify their fees so it's imperative you:

1. Find an active manager who has a strong, clear and repeatable process in order to give themselves the best chance to achieve alpha.

2. Align yourself with a manager who represents your views. In tough times, it is easier to stay the course with a manager who does things the way you would do it in the same situation.

3. Look for true 'skin in the game'. Lots of fund managers talk a good sales game but actually do they have a humility over their investment decisions in the same way that having your own capital at risk gives you.