"Active Management Under Siege: A Struggling Firm's Warning Sign. A prominent investment firm's recent struggles are sparking concerns about the viability of active management in a market dominated by low-cost index funds and exchange-traded funds (ETFs). As investors increasingly turn to passive investment strategies, active managers are facing intense pressure to outperform the market, a feat that's becoming increasingly difficult to achieve. The firm's struggles serve as a stark reminder of the challenges facing active managers, who must now contend with the allure of lower costs and the simplicity of index-tracking products."
Firm’s struggles illustrate challenge for active managers amid low-cost competition from indexing and ETFs