[Jeff W]

Before anyone jumps on the active management train, remember to look at ER and Tax Efficiency(in taxable accounts). Active funds tend to have high turnover relative to passive funds, which leads to tax inefficiency.

[ QUOTE ]
They seek to buy undervalued, out-of-favor stocks with high cash flows, low book values, often low debt, that generally pay some sort of dividend. A simple example would be Neff’s purchase of Ford in 1984 when it carried a PE of 2.5x. In less than 3 years it climbed 350%. Strong-form says the market is 100% rational, 100% of the time when evaluating every single security in the marketplace -- this is clearly false.

[/ QUOTE ]

This strategy is replicable with Rydex Pure Value ETFs -- RPV, RFV, RZV. 0.35 Expense Ratio, very deep value orientation. Again, it net of taxes it can be difficult to reproduce the value premium in taxable.