In an efficient market at any point in time the actual price of a security will be a good estimate of its intrinsic value.

In an efficient market at any point in time the actual price of a security will be a good estimate of its intrinsic value.

An investor doesn’t have a prayer of picking a manager that can deliver true alpha.

Active management is a zero-sum game before cost, and the winners have to win at the expense of the losers.

The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware that outlier returns are more common than would be expected if return distributions were normal.

I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information.

I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same question. Since I think everything is appropriately priced, my advice would be to avoid high fees. So you can forget about hedge funds.