Hi Jason,
Thank you for an excellent contribution to the unfortunately never ending defense of active management.
The studies are also flawed in that talent is often not retained by the active fund industry. More importantly, the results of the remaining talent are diluted by 1.) the industry attracting mediocre managers due to attractive compensation and then retaining those managers due to inertia, etc.on the part of those slecting managers and 2.) the industry too often has a business focus (asset gathering) instead of an investment focus. How about a study that focuses on the subset of active managers that demonstrate: a value focus, low turnover, analytical rigor/insight, temperment awareness, loss avoidance etc.?
Looking forward to more on this topic,
Mike