What do active investors do? Active investors believe that markets are “inefficient”. They believe that, at any point in time, there are always some securities that are mis-priced, enabling them to buy or sell making a profit. Professional active investors devote unbelievable amounts of time and resource towards trying to find that extra edge. They will then trade in and out of those securities to try and generate profits above the benchmark. They pour over company financials, visit with competitors, study all the latest economic releases, and try to predict everything from corporate earnings to the direction of interest rates and currency movements.