[NajdorfDefense]

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Nice post Naj,
but some definitely do and it is possible to beat it. I just think that out of the thousands of funds, perhaps only a few hundred are being managed by people who can.

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I wholeheartedly agree.

We're invested with a manager who's beaten the SPX by 40bps a year after fees for 15 years...with 65-75% less volatility.

Think about that...that should be impossible! Better market performance and alpha generation with a vol 3-4x less and no correlation -- I can't even think of a metaphor describing how insanely difficult that is, but it obliterates the notion of 'luck.'
Your finance professors [90% of them] will tell you it's flatly impossible. They are wrong.

However, I'm not here to debate the existence of managers I've been invested with for years, any more than I would debate a flat-earther or the Earth being the center of the solar system. John Neff's record of alpha generation alone over 384 months, crushing the index by a statistically significant margin speaks for itself.

One cannot maintain that '90% of managers trail the market by 2%' and also assume away people who net 50% a year for 2+ decades after trading costs. The data contradicts the theories quite easily obviously. It's even more obvious in the world of fixed income.