Struggling active managers face the reckoning

Plus: Dodd-Frank foes outline plan to dismantle law, Goldman says utility stocks expensive and JPMorgan revamps dress code

JUN 08, 2016

By Jeff Benjamin

Active investment managers have done a pretty poor job of beating their benchmarks. And to add insult to injury, AllianceBernstein CEO Peter Kraus says the $30 trillion industry may need to cut assets by as much as a third.
One of Dodd-Frank's biggest Republican foes has outlined his plan to take down significant parts of the landmark regulation. Some are saying U.S. Rep. Jeb Hensarling's plan may influence the presidential debate and help shape the GOP agenda in the next term.
Goldman Sachs says utility stocks, a safe haven for seeking shelter from volatility, are getting expensive. Analyst with the bank say regulated utilities now trade at a forward price-to-earnings ratio in excess of the S&P 500 based on estimated 2017-2018 earnings.
At JPMorgan, pin-striped suits are so yesterday. The big bank has revamped its dress code to allow employees to dress in business-casual attire when appropriate.

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