Institutions can invest in stocks, bonds and real estate, of course, but they can also choose to invest in venture capital, gold, commodity futures, fine art and other assets. Some of these assets behave more like commodities than financial investments, and some are more appropriate than others as vehicles for passive management. Because of short-selling constraints and the price effects of consumer demand, commodities may be overpriced from an investment standpoint. Commodities thus require active management. The use of futures contracts, however, can eliminate the problems of overpricing and short-sale constraints. A portfolio of futures and cash, by securitizing commodity price risk, becomes an acceptable candidate for passive management. Recent academic research suggests that there exist inefficiencies, or anomalies, in the markets for many investment assets. These may create opportunities for active managers. It remains unclear, however, whether some inefficiencies really represent exploitable opportunities offering returns superior to those available from passive management after adjustment for risk and the costs of active management. Some so-called anomalies may merely be proxies for systematic risk.