On the Size of the Active Management Industry
认为主动管理行业的流行并非谜题，尽管其业绩不佳，但规模报酬递减解释了这一现象：行业规模越大，经理人超越被动基准的能力越弱。
We argue that active management's popularity is not puzzling despite the industry's poor track record. Our explanation features decreasing returns to scale: As the industry's size increases, every manager's ability to outperform passive benchmarks declines. The poor track record occurred before the growth of indexing modestly reduced the share of active management to its current size. At this size, better performance is expected by investors who believe in decreasing returns to scale. Such beliefs persist because persistence in industry size causes learning about returns to scale to be slow. The industry should shrink only moderately if its underperformance continues.