[joosters]

And the active funds would have noticed Enron how?

[kgwgk]

Not a good example: https://en.wikipedia.org/wiki/James_Chanos#Enron_collapse

[ceejayoz]

Also not a good example. Individual fund managers, financiers, etc. often make individual correct (or lucky, sometimes) decisions. It's their ability to do that continuously for decades that's very much in doubt.

[walshemj]

I think there where enough signs of enron being doddgy

[ceejayoz]

Given that individuals who predicted it are notable enough to have a Wikipedia entry, I'd say that's hindsight talking.

[jogjayr]

That just moves the problem away from stock-picking to manager-picking. How do you pick a "good" manager as a retail investor? A winning track record could just be the result of survivorship bias.