they don't go broke - they still generate positive returns. I am not sure why they actually need to beat S&P 500. I think this is misunderstanding portfolio t

they don't go broke - they still generate positive returns. I am not sure why they actually need to beat S&P 500. I think this is misunderstanding portfolio theory. As long as they are not perfectly correlated with investors overall portfolios and they have positive returns, it's ok for them not to beat S&P