Fundamentally Active - Wilshire Associates

investing. The value and small-cap tilts are performance bets that have been documented for nearly 20
years, and, consequently, the response to the investment question should be the standard line, “Past
performance does not guarantee future results.” These alternatively-weighted strategies should be
evaluated the same as those of a computer driven investment process not as a replacement for core beta
investing. The problem with investing in these structured portfolios as an active index strategy is that the
process to improve them ceases once the index is released. Eugene Fama may have said it best: “It’s a
triumph of marketing, and not of new ideas.” 24
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24 “Straight Talk: Fama and French,” Journal of Indexes, March/April 2007: page 11.
Fundamentally Active
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