In a Passive World, These Stockpickers Are Thriving
A handful of funds show that an active approach to managing money can still beat the market—at least for a while.
Even as the investing world increasingly concludes that low-fee passive investing is the most reliable way to build wealth, a handful of active fund managers who embrace unorthodox strategies are beating the market. They typically run lower-profile operations and exhibit a patience that’s rare in today’s market, making big bets on a smallish number of stocks based on intense research and analysis.
Nadim Rizk, the founder of PineStone Asset Management Inc., has a simple concept: focus on only about two dozen stocks and hold them for a decade or more. “Essentially, we’re extremely long duration,” says Rizk, whose firm manages three funds with a total value of about C$70 billion ($52 billion). “You can stress the extremely. We hold stuff for 20 years, 25 years.”