Jack Shannon, a senior manager research analyst at Morningstar Research Services, discusses the struggles of active fund managers in picking winning stocks. He reveals that even with high hit rates, many funds underperform due to high fees and market concentration. Shannon explains how active mutual funds can lag behind passive ones, and he highlights the potential of small-cap stocks for better returns. He also explores the complexities of stock selection, making a compelling case for why amateur investors might benefit from professional insights.

A discussion with Jack Shannon from Morningstar on active equity management, downside protection, and challenges faced by managers in deviating from benchmarks. Topics include fund flows, risk management, growth vs value investing dynamics, and the importance of understanding market history for successful investing.