The latest video uploaded to the Fama & French Forum looks at the issue of identifying superior managers. This is what the big financial companies are telling us every day through their advertising - that they have the expertise to set the course for your financial assets. As Ken French explains, there may actually be superior investment managers out there, the trouble is how do we identify them before not after their period of out-performance?
The conclusion is that if you want to be certain that you will achieve better than average returns you need to employ an index based approach where the fees, transaction costs and capital gains implications are lower. I encourage you to take a look at the video - Identifying superior managers.