FYI: In 1998, Charles Ellis wrote “Winning the Loser’s Game,” in which he presented evidence that while it is possible to generate alpha and win the game of active management, the odds of doing so are so poor that it’s not prudent for investors to try.
At the time, roughly 20% of actively managed mutual funds were generating statistically significant alphas (meaning they were able to outperform appropriate risk-adjusted benchmarks). Today, that figure is much lower
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-tracking-alphas-shrinkage
