Renowned financial economist Kenneth French shares his views on the difficulty of picking the next winning manager. Mark Hebner and Tom Cock discuss a chart titled, “Evidence of a Lack of Stock Picking Skill among Managers,” which analyzes the returns of 614 mutual funds. The results show that only one fund (0.16% of the funds) had a statistically significant positive alpha (which would determine skill over luck), but when the time period of the study was extended an additional two years, the statistical significance disappeared. Once again, the performance was due to luck, not skill.