Not all investment fees are equal

fees2In this article, Bradley Anthony, Chief Investment Officer of Fairtree Capital comments on the explosion of passive investment products, driven by greater appreciation of investment cost as well as the dearth of excess return or alpha amongst active managers. He introduces the concept of the value ratio, arguing that it is impossible to determine whether costs are high or low without framing that cost in the context of the value provided. He argues that it is a mistake to focus on costs in isolation. Read more