[XorNot]

People do beat the market, but the thing is if you can beat the market then you don't need to accept public money - you become a private trading firm and trade with your own money and keep all the profits.

That's the issue: successful firms which beat the market don't keep doing it on behalf of other people for very long.

[bombcar]

The “active funds don’t beat index funds” studies showed they actually do - before expenses. After expenses the net return was lower.

[nly]

If that's the case why bother taking external money?

Answer: because they make more money from the fees than they do by "beating the market"

The truth is if you beat the market by pure luck once you can market your shit fund and lure in thousands more investors for decades.

[bombcar]

Because the goal isn’t to “beat the market” (most beat by a very small amount) - the goal is to make money selling their “services”.