Here are some key takeaway points for investors:
There is a small but sufficient number of active strategies that have high benchmark beat-rates.
The key reasons most active funds underperform the benchmark include:
Geographic rigidity; and
Luck is being a growth manager in a market where growth stocks are outperforming.
Skill is doing the style factor research and making an active decision to overweight growth when this style is working.
Skill is also being willing to pivot from one style and move to an emerging performer when the evidence suggests its prudent.