That’s the conclusion of “The Incredible Shrinking Alpha,” a new book by Larry Swedroe, chief research officer for Buckingham Wealth Partners, and Andrew Berkin, head of research at Bridgeway Capital.
How bad is it? S&P Dow Jones Indices has studied active managers for many years. Last year, they noted that after 10 years, 85% of large fund managers underperform their benchmark (usually the S&P 500), and after 15 years, that underperformance reaches 92% of managers.
That is a very bad record!