Is active investing doomed as a negative sum game?

Geoff Warren | Australian National University | 13 November 2019 | 1.00 CE

In an influential piece, Sharpe (1991) put forward the proposition that active investing must be a losing pursuit in aggregate, as it amounts to a zero sum game in gross terms and hence must be a negative sum game after costs. This paper takes a critical look at the underlying concepts and assumptions behind Sharpe's proposition, and links it to the issue of whether it is worthwhile for invest...