PT - JOURNAL ARTICLE AU - Todd Miller AU - Timothy S. Meckel TI - Beating Index Funds With Derivatives AID - 10.3905/jpm.1999.319708 DP - 1999 Aug 31 TA - The Journal of Portfolio Management PG - 75--87 VI - 25 IP - 5 4099 - https://pm-research.com/content/25/5/75.short 4100 - https://pm-research.com/content/25/5/75.full 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.