Title: 
Headings: 

Content: His Table 6 shows that by one metric (the F-T(1.5-2) ratio) investors out-performed on average across the four years of the study. Stock-pickers try to find mis-priced securities. Since these are more likely to be found in smaller stocks not covered by analysts, they end up owning smaller-caps. If their strategy is to buy low and sell high, they end up with value stocks. If they choose to do no research and tag along with the market, they end up with momentum stocks. Yet returns are discounted for exactly these factors. To dismiss their returns because of the strategy chosen, is to guarantee the conclusion that they under-perform. Worse still, cash in the account is ignored. It is impossible to measure risk without including cash. Active management's greatest benefit comes from simply exiting the market, into cash, during major downturns.