Two dominant species of bird have emerged in finance: the passive investing sparrows and the active managing hawks. They’re constantly at odds over the meaning of their personal songs. On the one hand, the active managers squawk, “No risk, no reward,” while the passives warble, “Don’t put all your eggs in one basket.” Yet somewhere in the middle lies a third bird, one that flies comfortably with both flocks, reaping the benefits of compromise.
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