This quarter, I discuss three familiar investment debates where rigid “either/or” thinking may lead investors to overlook the possibilities of “and”: active vs. passive, US vs. non-US, and public vs. private. In a recent poll, we asked allocators which of these causes them the most stress: The top choices were active vs. passive (41%) and public vs. private (34%), followed by US vs. non-US (19%) and other (5%; e.g., growth vs. value).*
For each debate, I weigh the arguments on both sides before outlining investment ideas to help move beyond the false dichotomy.
* Wellington Management poll conducted at periodic webinar in July 2026. Responses reflect participant views at the time of the meeting, are subject to change, and are for illustrative purposes only.
Important Risks: Investing involves risk, including the possible loss of principal. Fixed income security risks include credit, liquidity, call, duration, event, inflation and interest-rate risk. As interest rates rise, bond prices generally fall. • Foreign investments may be more volatile and less liquid than US investments and are subject to the risk of currency fluctuations and adverse political, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets. • Focusing on one or more sectors, including the information technology, consumer discretionary and communication services sectors, may subject investors to increased volatility and risk of loss if adverse developments occur. • Private equity, private credit and private infrastructure investments involve substantial risk, including the possible loss of principal. These investments may be illiquid, difficult to value and subject to extended holding periods. • Private equity investments are subject to risks associated with the financial and operating performance of portfolio companies and the ability to successfully execute exit strategies. • Private credit investments are subject to credit and default risk, including the possibility that borrowers may fail to make required interest or principal payments. • Private infrastructure investments are subject to risks associated with the development, construction, operation and maintenance of infrastructure assets, as well as changes in economic conditions, demand, regulation, government policies and environmental factors. • Private investments may also involve leverage, limited transparency and less publicly available information than traditional publicly traded investments.• Diversification does not ensure a profit or guarantee against a loss.
The views expressed here are those of the author and are based on available information and are subject to change without notice. This information should not be considered as investment advice or a recommendation to buy/sell any security. In addition, it does not take into account the specific investment objectives, tax and financial condition of any specific person. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams and different fund sub-advisers may hold different views and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Wellington Management or Hartford Funds.