Dear Jason;

Thank you for your response. I am with you 100% on being a supporter for active management, but the issue with active management is structural in my opinion. The measurement of performance on time periods as short as a couple of quarters focuses attention and efforts by practitioners on generating returns over time periods where price movements are pretty random. Investors who reward recent short term performance, also play an active role in encouraging practioners in chasing performance over the short term. I recall a fantastic stat quoted in a televesion interview by a hedge fund manager who said the best performing US mutual fund over the last 5 years had the average investor in the fund actually losing money after fees because of the churn. That was a really incredible factoid I thought.

I found your article interesting and thought provoking, hope to read more from you in the future as well.