Another One Bites The Dust

From this recent Bloomberg.com story comes news of a large state pension fund electing to dump their active managers and make the smart move to passive investing.  Here's the quote:

``We've determined that active managers add no value over long periods of time,'' Michael Travaglini, director of the Massachusetts Pension Reserve, said in an interview.

I couldn't agree more with Mr. Travaglini.

And Carl at BehaviorGap.com makes a great point in reference to this story:

If active management isn’t working for a large pension fund, why would it work any better for you with a much smaller margin for error?

Well said, Carl.  Well said . . .