PT - JOURNAL ARTICLE AU - David M. Blitzer AU - Srikant Dash TI - Does Active Management Work for Small-Cap Stocks? DP - 2003 Mar 20 TA - Special Issues PG - 17--20 VI - 2003 IP - 1 4099 - https://pm-research.com/content/2003/1/17.short 4100 - https://pm-research.com/content/2003/1/17.full AB - 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.