Using Prima Alpha To Seperate Skill From Luck

The active management industry is facing an existential crisis. Supbar returns in active equity strategies over the last decade have led to massive outflows from active strategies into passive strategies. Management fees have declined precipitously as lower-cost smart beta strategies encroach on the domain long held by active managers. Investors are questioning the value-add of active management as well as their own abilities to select the best performing strategies.