“Since large low cost index funds are not subject to the vagaries of active management, it seems reasonable to infer that true α for a portfolio of these funds is close to zero. In other words, going forward we expect that a portfolio of low cost index funds will perform about as well as a portfolio of the top three percentiles of past active winners, and better than the rest of the active fund universe.”
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Luck versus Skill in Mutual Fund Performance - Fama/French Forum
I would not have guessed the distribution of fund performance was this lopsided.
