What to look for in an active manager

March 30, 2021

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Vanguard partners with 25 external investment advisory firms to manage the majority of our active equity funds. As reflected in accolades and Barron's rankings, Vanguard has a knack for picking talent.

In a recent paper, Active Edge: Winning the Zero-Sum Game, Vanguard Portfolio Review Department details the key attributes it looks for when selecting active managers, backed by research from Vanguard and third parties.

What's our recipe for success? Essential ingredients include a manager's philosophy, process, ownership structure, diversity, and track record against the proper metrics. The paper presents case studies using Vanguard funds.

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