[nickff]

How do you respond to the Fama and French paper on luck versus skill in mutual fund performance? They showed that on average, active managers hold a market portfolio, and since they take a cut, ETF portfolios make more money; there was no evidence of skilled managers getting better returns for the investor. Do you believe that institutional managers are better than mutual fund managers?

[skolos]

I agree with many points in Fama and French paper. However its conclusions are based on data more than 20 years old. Lots of things has changed since then. I would be curious to see the results with more recent data.

[nickff]

Some of the data sets used end in 2002 or 2006, and I am not aware of any reason why we would expect different findings from more recent data. Using data from the great recession and the current market situation may also be more confusing than elucidating.