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AGeneralUpdated 2 Nov 2026

Active management

Investment strategy where portfolio managers make decisions to outperform the market.

Definition

Active management is the investment strategy where portfolio managers make decisions to outperform the market. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

A mentor asks, “What is your Active management?” The useful answer is concrete: investment strategy where portfolio managers make decisions to outperform the market. A slide title is not an answer.

Common mistake

Using Active management as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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