For many years, the investment community has divided itself into two broad categories with regard to investment philosophy: traditional active management which seeks to enhance returns through superior stock selection or market timing, and passive management which seeks to capture market rates of return at low cost.

Most passive strategies seek to replicate the returns of the widely followed benchmark indices such as the S&P 500 Index, the Russell 2000 Index of small-company stocks, or the MSCI EAFE Index of large non-US stocks. Among financial practitioners, the words “passive” and “indexed” have often been used interchangeably. (Read on …)

There is a new model of investing: a model based not on speculation but on the science of capital markets. Decades of research guide the way. The mission of any money manager is to deliver the performance of capital markets and increase returns. (Read on …)