Why Active Managers Fail (and Why You Shouldn’t Fire Them)

The active managers at fund Grantham Mayo van Otterloo (GMO) are advising investors not to hastily fire active managers who have performed abysmally vis-à-vis their benchmarks in 2014. No, they are not saying that GMO, best known as the hedge fund home of Jeremy Grantham, has underperformed. This is not personal. Rather, two of GMO’s investment…