Lipper on CNBC: Active Management Comeback Ahead?
article 10-12-2016

Lipper on CNBC: Active Management Comeback Ahead?

Senior Investment Strategist Steve Lipper joins CNBC's Trading Nation to discuss our recent research into the connection between value-led markets and active management.

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On October 6, Senior Investment Strategist Steve Lipper joined CNBC's Trading Nation and discussed our newest research examining the connection between active management and value-led markets with host Brian Sullivan.

Our recent study, The Undiscovered Connection, showed that small blend active management has outperformed more frequently in value-led markets.

Steve explained why this research is relevant to investors, and the prospects for small-cap, saying "We think that we're in the early stages of a transition…rotating from growth to value. Over the long term, value does better actually than growth, if you do rolling five-, rolling ten-year periods, most of those periods, value does better."

Steve also explained the importance of the research: “When people are constructing portfolios, what this frames out as, is the next five years are going to look a lot different than the last five years. And do you want to be wary of being overloaded with past winners?”

Watch the entire interview here.

Important Disclosure Information

Mr. Lipper's thoughts and opinions concerning the stock market are solely his own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that past performance trends as outlined in this article will continue in the future.

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

For the Morningstar Small Blend Category: © 2016 Morningstar. All Rights Reserved. The information regarding the category in this piece: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

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