Barry, your points are all valid and I'm in agreement. Yes, Keynes statement does apply in the context of tracking error, which is why I stated that there is a portion attributable to closet indexing.
The thesis was that in general, it is harder and harder to recognize a Star fund manager these days, especially for the average investor. And that perhaps the reason that is is because alpha is hard to extract if everyone is playing on the same level playing field.
Wealth management and investment theories are suitable to each clients personal objectives and goals. So completely agree with the private client statement.
Thank you for reading and commenting.