Excellent article. Thanks for sharing.
To me, it shows that markets are not efficient. Just because the information is all out there, doesn't mean that everyone has waded through it.
On the other hand, the article also shows why it is hard for a professional to exploit these inefficiencies & why you're not likely to get a reference to such people from your broker or your favorite investment rag. Also, did you notice the information on the last page?
By June 30, 2008, any investor who had stuck with Scion Capital from its beginning, on November 1, 2000, had a gain, after fees and expenses, of 489.34 percent. (The gross gain of the fund had been 726 percent.)
I buy into the indexing theory, but in practice have kept some actively managed funds (ironically, with very low turnover volumes) that have served me well for over a decade. I have stuck to indexes for new funds in the past few years.