Traditional, long-only asset managers are still hired mostly out of some combination of nepotism, status signalling, cover-your-ass advisory board issues. When

Traditional, long-only asset managers are still hired mostly out of some combination of nepotism, status signalling, cover-your-ass advisory board issues. When I worked in a long-only equities asset manager, there even were frank discussions with the client services team about how to organize materials for when a client was preparing to fire us. We actually assisted them with the process of firing us, told them what to say, etc., so they would save face with the rest of the board or whomever they answered to. Basically, it's a lot like hiring a manager in international soccer. Very few of them actually bring results, but big, wealthy clubs will still go through a huge media circus, pay a huge wage, and do all sorts of things, to hire status-signalling managers. Then, later, when it's not working out, it is that manager's job to be sacked gracefully, once again creating media buzz that makes the club look good in front of the fan base for "doing the right thing" and firing the manager. In asset management it's the same. "Hire-us-now-to-look-fancy" and "Fire-us-later-to-look-like-you're-dedicated-to-ideals-and-righting-the-wrongs" are both very much the major parts of the services they provide, and both are things that these companies go on at length about when courting a new prospective client. Heck, some client service employees even get part of their bonuses based on how happy the clients are with the assistance they receive in drafting press releases, putting together slide decks, or writing white papers about firing that manager.