Conventional wisdom suggests that hiring an active equity manager is a fool's errand. I once believed this too, as did many of my academic contemporaries enamored with an elegant yet flawed notion of efficient markets.

Many advisors have since jumped on the bandwagon, believing that hiring an active manager represents the triumph of hope over reality. The passive parade has only grown more popular in recent years, proudly marching through the last decade with no excess returns to show for it.

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