RT Journal Article SR Electronic T1 Beating Index Funds With Derivatives JF The Journal of Portfolio Management FD Institutional Investor Journals SP 75 OP 87 DO 10.3905/jpm.1999.319708 VO 25 IS 5 A1 Todd Miller A1 Timothy S. Meckel YR 1999 UL https://pm-research.com/content/25/5/75.abstract AB Indexing has become a popular practice in the investment community. The authors present two primary methodologies that can be used to index a portfolio, and then offer alternatives to “enhance” the process by adding some “active” management. The active elements the authors discuss, which exemplify rigorous risk management principles in accordance with the investor's objectives and guidelines, are based on the identification of market-neutral strategies whose alpha can be “transported” into the indexed portfolio. The authors contend that combining an active element and a passively indexed portfolio produces long-term benefits.