Alliance Bernstein Throws in the Towel in the Active vs Passive(indexing) Management Debate: Active Can't Best Passive

Kudos for their honesty..but don't expect them to close down their actively managed mutual funds or their stock picking and market timing "separately managed accounts".

From the FT

AllianceBernstein chief says active management ‘too big’

Robin Wigglesworth, US Markets Editor

The asset management industry has grown too bloated to consistently produce market-beating returns and needs to be more disciplined on size to restore investor faith, according to the head of one of the biggest US investment houses.

Money has gushed out of traditional stockpicking funds in recent years and into cheap “passive” strategies such as exchange traded funds, as most portfolio managers have proven increasingly unable to consistently beat their benchmarks after fees.