This 2011 paper out of the Tuck School of Business (Dartmouth) concludes that institutional (active) managers add very little value as a group, that the biggest managers create the least value, and that institutions in aggregate do little more than hold the market portfolio.
An article by William F. Sharpe, from the January/February 1991 issue of The Financial Analysts Journal (Vol. 47, No.1, pages 7-9), making the point that active investing is a negative sum game.
Twice per year, Standard and Poor’s compares the performance of actively-managed mutual funds to their relevant benchmark indices. The latest S&P Indices Versus Active SPIVA® Scorecard shows that once again, actively-managed mutual funds under perform in almost every asset class, style and fund category.