To Battle Passive Funds, Active Investors Shun Diversification


Conventional investing wisdom holds that the safest portfolios are highly diversified and spread across a considerable number of assets. But that isn’t stopping plenty of stock pickers from running in the opposite direction.

The growth of passive investing has motivated an increasing number of active fund managers to shun diversification and focus on portfolios of fewer stocks. Part of the idea is to differentiate themselves from the low cost, index-tracking exchange-traded funds that have done so well during the 10-year bull…



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