Separating Skill from Exposure - A Data-Driven Framework for Manager Evaluation

Featured • October 22, 2025

Separating Skill from Exposure

Active management is undergoing a quiet transformation as advances in data, analytics, and portfolio construction reshape how skill and performance are measured. For allocators, this shift offers new clarity into what drives returns, but also challenges long-held assumptions about active versus passive value.

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The key development has been the shift from static spreads to more systematic allocation frameworks across indices and maturities, supported by improved signal construction, normalization, and dynamic risk management.

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