DO ACTIVE MANAGERS OUTPERFORM IN A DOWN MARKET?

Excellent weekend reading here on active fund management.  The researchers find that active fund managers outperform their non-active peers in down markets by over 4.5%, however, they also conclude that active fund managers underperform during rising markets:

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Cullen Roche

Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.

He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.