Jeremy, the research you cite is interesting--though by no means new--but your evaluation of its importance is very strange. Evidence that analysts "add value" has existed for decades. What damns active management is not a suspicion that active managers fail to "add value," but simply the empirical reality that the incremental costs of doing so are greater than the value added. If you give me something worth $1, but you charge me $2 (or two-and-twenty) for it, you have certainly given me something with "value"--but I would be a stupid idiot to pay what you ask for it.