The Playing Field Has Leveled for Active Managers
In relative terms, the best have declined, while the worst have improved.
The Paradox of Skill
Last week's column, "The Problem for Active Management Isn't Indexing," discussed the paradox of skill.
The paradox being that as a competition becomes fiercer, its winners appear less impressive than those of the past. Ted Williams secured the 1941 batting title by hitting .406. Last year's American League champ, Jose Altuve, hit 60 points lower. The 1896 Olympic marathon winner finished seven minutes ahead of the silver medalist. The 2016 titleholder won by one minute. Where have all the good men gone?