Hi Brad,

Stewart's monograph also surveys research on the alpha persistence of the manager-selection tier in Chapter 7. As with active management alpha Stewart describes a mixed picture. I haven't yet seen the Jenkinson, Jones & Martinez paper but it is usually appropriate to be cautious and reserve judgement about each new study and any limitations of its data, methodology and conclusions.

Can you think of any practical reasons why, despite unfavourable evidence, there are still thousands of highly qualified, experienced and rational actors employed in this tier of activity rather than investing 100% passively? Is there something wrong with the makeup of the indices perhaps?

Best regards,

Mark