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?

Fairy Tale of Active Management