Then they underperform their market benchmarks by more than 4 percent a year, what he called "just an enormous gap."
According to Lipper Inc., more than half - 57 percent - beat their market benchmarks in the quarter.
If most money managers can't match market benchmarks, why should art investors do any better where value is even less tangible?
He also compared each manager's record at a fund to a market benchmark that reflected the fund's style and investments.
ETNs are designed to provide investors access to the returns of various market benchmarks.
Riding the bubble and timing sales of individual stocks also paid off: hedge funds' investments in the technology sector outperformed market benchmarks.
Twenty of the 30 stocks in the Dow, the market benchmark, advanced.
And a new index fund, which tracks a market benchmark like the Standard & Poor's 500, is unlikely to offer surprises.
Shoulders dropped a little on Wall Street yesterday, as a reassuring day ended with all the major market benchmarks higher in extremely heavy trading.
That's a startling admission from a company that has long denied its popular index funds affect the market benchmarks that they track.