TY - JOUR T1 - Beating Index Funds With Derivatives JF - The Journal of Portfolio Management SP - 75 LP - 87 DO - 10.3905/jpm.1999.319708 VL - 25 IS - 5 AU - Todd Miller AU - Timothy S. Meckel Y1 - 1999/08/31 UR - https://pm-research.com/content/25/5/75.abstract N2 - 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. ER -