Why—in the face of such overwhelming evidence to the contrary—do investors and managers continue to believe they will outperform markets? 1) Fees: Investors collectively spend around $100 billion per year trying to beat the market. 2) Overconfidence: Investors are living in a fairy tale world where everyone is strong, good-looking and an above-average stock picker. But two of the world’s most sophisticated institutions are waking up to the fact active management has failed them. Shouldn’t you?
The Fairy Tale of Active Management
