TY - JOUR T1 - What's the Chance of That Happening? JF - The Journal of Wealth Management SP - 51 LP - 55 DO - 10.3905/jwm.1999.320365 VL - 2 IS - 3 AU - William E. Fender AU - Brian P. Cunningham Y1 - 1999/10/31 UR - https://pm-research.com/content/2/3/51.abstract N2 - This article revisits the debate on the relative benefits of passive and active management processes, focusing more specifically on the U.S. large capitalization stock equity market, represented by the S&P 500 index. It starts by exploring the pre-tax investment returns that an active money manager would have to produce to equal, after-taxes, the S&P 500 index. It then compares those returns to a universe of active money managers to determine how high the manager would have placed in his peer group. The results indicate that only a very small percentage of active money managers would have produced pre-tax investment returns sufficient to outperform, after-taxes, the S&P 500 index. ER -