How Active Management Survives

There is much evidence that passive equity strategies dominate active equity management, but many investors remain committed to active investing despite its poor relative performance. We explore the behavioral-economic hypothesis that investors fall prey to the conjunction fallacy, believing good returns are more likely if investment is accompanied by hard work.

How-Active-Management-Survives

Heaton, J.B. & Pennington, G.L. 2018, 'How Active Management Survives'

Source: https://jbheaton.com/wp-content/uploads/2018/...