An investor doesn’t have a prayer of picking a manager that can deliver true alpha..

Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people shou….

I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same question. Since I t….

I’d compare stock pickers to astrologers but I don’t want to bad mouth astrologers..

The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware t….

In an efficient market at any point in time the actual price of a security will be a good estimate of its intrinsic value..

The efficient market theory is one of the better models in the sense that it can be taken as true for every purpose I can think of. For investment pu….

I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information..

I don't think the Federal Reserve has any role in how high rates are right now. I don't understand why everyone is paying attention to this tapering.….

People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that you observe for active manag….

After taking risk into account, do more managers than you’d see by chance outperform with persistence? Virtually every economist who studied this que….

I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people save too much during th….

Active management is a zero-sum game before cost, and the winners have to win at the expense of the losers..