Hello again, JY,

Thanks again for your comments. First, if you consider mentioning my former employer of 12 years ago in passing is promotional. Then I could argue by the same logic that you are shilling for yahoo because you use a yahoo e-mail account. I think that is pretty flimsy. In my case, I highlighted my work as an investment manager because I believe that experience and success in the industry are relevant to the conversation.

My research does not show that 87% of managers, as measured by a Sharpe ratio, beat their index. Sharpe ratios use standard deviation as their denominators. We have been over this before, and the research does not state what you are stating. Is the research outdated. Perhaps.

Separately, Tom and I have authored an entire series of posts about how to improve active management. Not just this singular post. Two more are forthcoming. Additionally, you should read my series entitled Alpha Wounds to see if you get a more comprehensive view of what Tom and I consider to be a systemic problem.

I do believe that using different risk measures than standard deviation, or semi-standard deviation can improve the returns of active managers. But so long as most are evaluated in that way, and manage their funds that way we won't have the ability to test the theory out. And that is a part of what Tom and I are discussing. Additionally, as we have said throughout this series. We hope to spark a discussion about how to improve active equity.

Next, I never conferred with any member of CFA Institute to write this series. Nor have I ever conferred with any member of management to author any of my pieces. As writers for Enterprising Investor, we are not held in check by a business plan mandate. You might want to peruse this post I authored less than a year ago before you draw another absolute conclusion: https://blogs.stage.cfainstitute.org/investor/2016/06/07/alpha-wounds-l… This is pretty strong proof to the contrary about your contention. Additionally, I can tell that you are relatively recent reader of The Enterprising Investor because for years we have featured articles from both sides of the passive vs. active debate.

Further, if you look at the roster of authors for out site you will see at least several hundred authors. Almost all of those are outside contributors, and not employees. The platform is open to you as well, and you don't even have to have a CFA charter. If you accept the challenge, as many who have authored a pro-passive management article have, and submit an article that meets our guidelines, and your writing is understandable and compelling, and your logic consistent, then you, too could be a writer for The Enterprising Investor. I am not one of the editors. So if our openness to your point of view is not evidence that we are not shilling, then can you be satisfied? You can find our requirements by clicking on the contributor tab at the top of the page.

Last, you did not answer the questions I asked you in my previous comments. I invite you do so, again.

Yours, in service,

Jason