Hedge fund tools key to active managers' survival

Active investment managers have no option but to adopt hedge fund strategies to counter the migration to low cost passively run portfolios, said an outperforming asset manager.

- Bloomberg

They need to shift to greater use of techniques like mathematical models, algorithms, derivatives and hedging, said Olivier Nobile of Arkea Asset Management. It will increase the chances of offering index-beating returns and greater protection for investors during downturns, said Nobile, whose firm is a unit of Credit Mutuel Arkea, which has $55 billion under management.