Active Inefficiency Excuse Hollow

Even many advocates of active management will concede that the efficiency of the market for U.S. large-cap stocks is so great that attempts to add value (generate alpha) through individual stock selection and/or market timing are unlikely to produce positive results.

However, they cling religiously to the notion that active management remains the winning strategy in less informationally efficient markets. And emerging markets are often considered the poster child for an inefficient market.

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