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The Better-of-Two Strategy for Active versus Passive Management: The Option Value of Active through Time

Steve Fox and P. Brett Hammond
The Journal of Portfolio Management February 2022, jpm.2021.1.314; DOI: https://doi.org/10.3905/jpm.2021.1.314
Steve Fox
is vice president and senior client analytics manager in the Client Analytics Group of the Capital Group of American Funds Distributors, Inc. in Los Angeles, CA
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P. Brett Hammond
is research leader in the Client Analytics Group of the Capital Group of American Funds Distributors, Inc. in Los Angeles, CA
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The Journal of Portfolio Management: 49 (4)
The Journal of Portfolio Management
Vol. 49, Issue 4
Multi-Asset Special Issue 2023
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The Better-of-Two Strategy for Active versus Passive Management: The Option Value of Active through Time
Steve Fox, P. Brett Hammond
The Journal of Portfolio Management Dec 2021, jpm.2021.1.314; DOI: 10.3905/jpm.2021.1.314

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The Better-of-Two Strategy for Active versus Passive Management: The Option Value of Active through Time
Steve Fox, P. Brett Hammond
The Journal of Portfolio Management Dec 2021, jpm.2021.1.314; DOI: 10.3905/jpm.2021.1.314
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  • Article
    • Abstract
    • MOVING PAST THE ACTIVE-PASSIVE DEBATE
    • THE BETTER-OF-TWO
    • REPLICATING THE BETTER OF TWO OPTIONS
    • BASIC PRINCIPLES OF THE BETTER-OF-TWO OPTION
    • PUTTING THE BETTER-OF-TWO TO WORK
    • OPTION REPLICATION PORTFOLIOS USING EQUITY MUTUAL FUNDS
    • PRACTICAL IMPLICATIONS AND EXTENSIONS
    • APPENDIX A
    • APPENDIX B
    • APPENDIX C
    • ENDNOTES
    • REFERENCES
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