Rowan attributes active managers' failure to beat indexes to market structure changes, not lack of skill.
“Most active managers have failed to beat the index 90% of the time for twenty years. I don't think it's a result of lack of effort or intelligence.”
Rowan notes active equity managers failed to beat the market 93% of the time over twenty years.
“Here are people who have spent their whole lives becoming good investors, and they as an industry have failed to beat the market 93% of the time for twenty years.”
Rowan states active management has failed to beat the index 85% of the time for twenty years.
“If you look at the active management, active management has failed to beat the index 85% of the time for twenty years.”
Rowan states active management has failed to beat indexes 85% of the time over twenty years and will get harder.
“If you look at the active management, active management has failed to beat the index 85% of the time for twenty years.”