Could the public debate between active versus passive indexing be about to take a turn? Likely not, but if it does the Monday WSJ Fund Track may provide some early evidence. The paper picks up recent research from FundQuest (the BNP Paribas-owned TAMP), that shows that active managers may be able to pick their time and place to come out ahead of indexers.

FundQuest looked at fund returns from 1994 to 2008 and found that actively managed funds topped their indices in foreign small-cap and mid-cap growth strategies.

O.K., it is not a lot, but it is a start.

The article quotes FundQuest's Jane Li as stating that "The less efficient the market, the more potential there is for a manager to add value."

The pithy pro-indexing quote is provided by Vanguard's Fran Kinniry, head of the firm's investment strategy.

"There are no areas that are better suited to active management so long as a good index is available," Kinniry tells the paper. 

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