"The Myth of the Investment Guru," in U.S. News & World Report, reports on Bill Miller, a darling of the stockpicking world for many years. Miller has had dismal results since 2005.
Likewise, Bill Gross, the "bond king," has dramatically underperformed the bond market this year based on his decision to short U.S. Treasuries. He later admitted that it was a terribly bad call. An icon whose investment advice had once seemed infallible has been called into question, along with the conventional wisdom of active bond investing.
When it comes to so-called "investment gurus," many index investors have come to terms with the marketing hype that is so prevalent in the investment industry. Like the emperor's new clothes in the Hans Christian Anderson fable, perception and substance are not the same thing.