FYI: J.B. Heaton is an unlikely stock market revolutionary. He doesn’t work in investing, his academic research focuses on legal aspects of insolvency, and most of his holdings are index funds. Yet thanks to his intellectual wanderings, Heaton today finds himself championing a slightly different take on active management’s decline—and, as it turns out, one that three professors advanced almost 20 years ago to scant recognition. Not only can’t humans outdo benchmarks, they all say, we can’t even fight them to a draw.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-04-09/lopsided-stocks-and-the-math-explaining-active-manager-futility
