Blue Whale's Stephen Yiu: 'Majority of active managers are in danger of becoming extinct'

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Blue Whale Growth fund’s chief investment officer and co-founder Stephen Yiu has argued that current active management space is oversaturated with underperforming fund managers.

Speaking on Thursday (5 June) at the Blue Whale Growth conference, Yiu said there are "too many active funds in general", adding "we do not need as many". Yiu emphasised the importance of remaining competitive as an active manager, with research from S&P last year revealing that around 90% of active equity fund managers underperform their index on a ten-year horizon. "The majority of active managers are in danger of being extinct," Blue Whale's CIO warned, as he caveated that he is "not an advocate of active management" but instead "an advocate of outperformance".  Blue Whale adds ...