Is Active Management Really Dying?

Hi All,

I'm a consultant to the investment management (IM) industry (mostly ops/strategic/regulatory stuff) who is starting my MBA next year. I am trying to finalize which finance path I should pursue. I have 2 questions:

  1. I realize consulting is not primary finance experience, and therefore any path in to HF, IM, VC, PE is difficult without connection... Any advice on a which are realistic paths, and b how to break in coming from a somewhat related/somewhat unrelated IM Consulting background?

  2. IM interests me the most, but I am concerned about focusing on HF/IM because of an industry belief that active management is dying... (ex: Buffet's bet w HFs). What are your thoughts on the long term effects of the rise of passive management? Is it a cyclical phenomenon or fundamental shift in the industry? Is it worth it to pursue a career in the IM/HF space today, or will related margin compression make this career choice a poor one when I look back in 25 years?

I realize this is a forum full of HF people, so likely everyone will disagree... just curious to hear why.

Thanks a lot.

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