%0 Journal Article %A David M. Blitzer %A Srikant Dash %T Does Active Management Work for Small-Cap Stocks? %B Impact of Measurement Techniques and Benchmark Selection %D 2003 %J Special Issues %P 17-20 %V 2003 %N 1 %X It is commonly believed that active funds perform better than indices in the small-cap market because of that market's relative inefficiency. In this article, we show that two issues—measurement techniques and benchmark selection—significantly affect any evaluation of active-management performance in small-caps. Specifically, we argue that correcting for survivorship bias, using asset-weighted fund returns, and substituting the S&P SmallCap 600 for the Russell 2000 as a benchmark paints a far less rosy picture of active management in small-caps than is commonly believed. %U https://guides.pm-research.com/content/iijspecial/2003/1/17.full.pdf