Timothy Armour, the Chairman and CEO of Los Angeles-based Capital Group Companies, has said that Warren Buffett’s longstanding advice is overlooking some things. Buffett has said that investors are better off avoiding actively managed funds and should instead buy an expensive passive fund that follows the S&P 500. Armour, on the other hand, thinks actively managed funds do play a role in people’s portfolios.
The argument that Timothy Armour has is that active versus passive is missing the point. There are actively managed funds that feature low fees. He also says that people shouldn’t settle for average returns and should instead seek out an active fund manager that can do better than market average on a consistent basis. The trick, Timothy Armour has said, is to find a low fee actively managed fund that has a reasonable amount of trade volume and also has the hedge fund managers own money in it.
Timothy Armour has been an equity investment manager for more than 30 years. He has spent his entire professional career at Capital Group Companies, starting in their The Associates Program. He graduated from Middlebury College with a Bachelor’s Degree in Economics.
In 2015, Timothy Armour was the leader in developing a strategic partnership with Samsung Asset Management. This agreement will bring Capital Group Companies experience in actively managed funds to South Korea. When talking about the agreement, Timothy Armour said that his company would codevelop solutions that would fit the retirement and insurance needs of Korean investors.
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