TY - JOUR T1 - Does Active Management Work for Small-Cap Stocks? JF - Special Issues SP - 17 LP - 20 VL - 2003 IS - 1 AU - David M. Blitzer AU - Srikant Dash Y1 - 2003/03/20 UR - https://pm-research.com/content/2003/1/17.abstract N2 - It is commonly believed that active funds perform better than indices in the small-cap market because of that market's relative inefficiency. In this article, we show that two issues—measurement techniques and benchmark selection—significantly affect any evaluation of active-management performance in small-caps. Specifically, we argue that correcting for survivorship bias, using asset-weighted fund returns, and substituting the S&P SmallCap 600 for the Russell 2000 as a benchmark paints a far less rosy picture of active management in small-caps than is commonly believed. ER -