Active fund managers have lost their competitive edge in a world of globalised investing dominated by skilled professionals with access to good research, says Charles Ellis, a leading investment consultant and author. But a top local manager says there is still room for active managers with sharp pencils and who are bold enough to be different. Ellis, the founder of Greenwich Associates, a leading US-based investment consultant and author of Winning the Loser's Game, says that in the 1960s only 10% of trading on the New York Stock Exchange was done by a few thousand investment professionals with access to in-depth research.

The rest was done by uninformed independents trading occasionally without much insight into the shares they bought or sold. Today, more than 99% of the trading is done by more than a million smart, skilled professionals - "all equally informed, equally armed, equally equipped", Ellis told Cape Town and Johannesburg audiences at an event hosted by local inde...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now