What factors are common to great equity investment teams? This question seems especially relevant in today’s world. Active managers are under attack. Charles Ellis and Burton Malkiel have just written a book entitled, The Index Revolution: Why Investors Should Join It Now. 1 The Economist magazine wrote that “a recent study by Standard & Poor’s, a credit-rating agency, showed that nearly 99% of active managers in American equities underperformed the S&P 500 index over ten years while in Europe, 86% lagged behind their benchmark over the same period.”2 Greenwich Associates published a report on the Future of Active Management which stated that “only 9.8% of active managers have outperformed the S&P Composite 1500 over the last 15 years, down from 52.3% in 2003.”3 And so it goes. The onslaught to discredit active management is in full bloom.