FYI: Active management is difficult. Only a minority of managers outperform after fees over the long-term and it is difficult to identify those which will ex-ante. Whilst this dominant critique undoubtedly has validity, there is another major hurdle for active management, which relates to the perceptions and behaviour of fund investors. It means that even if we can successfully isolate managers with skill, there are no guarantees that we will reap the benefits of it.
Regards,
Ted
https://behaviouralinvestment.com/2018/07/30/the-other-problem-with-active-management/
