Norbert, our research was limited to actively managed US equity funds, so our findings are all limited to such. Also, the industry data we provided (based on Morningstar data) covers annual performance of active and passive funds going back nearly 30 years. Over that time, there were two full market cycles (1990s leading up to the bear market of 2001 -2002; 2000s leading up to the 2008 bear market), and other pockets of significant market downturns. We believe that this data captures cyclicality of active managers completely.

For the information related to High Conviction Overweights (HCOs), we did not have sufficient data to go back through a full market cycle (i.e., back to 2007), but I will stick with my earlier comment that most investors have an investment decision horizon for active managers that runs 1-2 years, and thus the data we analyzed has significant value to the marketplace even over the time period covered.