Asset management is a fascinating industry. Bill Sharpe characterised it with a couple of observations. The first is that investing is a zero-sum game, meaning that on average all investments average the market return, and that for every winner there has to be a loser. Sharpe’s second observation is that it takes about 40 years to determine the talent of a manager as a result of markets being so noisy, hence it is almost impossible to judge quality. The implications are that very few managers will add value (after costs) but never...