> And thanks to competition between capital suppliers (ie you) the successful active managers will raise their fees until they eat all the excess return. What

> And thanks to competition between capital suppliers (ie you) the successful active managers will raise their fees until they eat all the excess return. What actually tends to happen in practice is the really successful active managers cease accepting money, because they can effectively print it. All strategies have capacity constraints and managing investors is not so fun. If you can generate positive returns without needing to pool risk, you don't need investors anymore.