Let's say that funds X, Y, and Z can regularly beat the market. Fund X then passes on better returns to its customers, and therefore gets more customers. Then Y

Let's say that funds X, Y, and Z can regularly beat the market. Fund X then passes on better returns to its customers, and therefore gets more customers. Then Y and Z have to do the same thing, otherwise they lose customers. Simple competition. Are you saying the above won't happen?