What are the main arguments in favor of active investment?

In recent years there seems to be a strong shift towards passive strategies due to cost and the underperformance of most active managers compared to the index.

Can active investors beat their benchmarks? Yes, there are many.

Can they do it long term over a period of several decades? Very few.

There is a lot of money to be made by MF, VC, PE, HF firms to “try” to beat the market. The emerging trend in HF firms is to base “performance fees” off actually beating a benchmark, not trying.