“We’ve determined that active managers add no value over long periods of time,” Michael Travaglini, director of the Massachusetts Pension Reserve, said in an interview. (Bloomberg News)

Active portfolio management took a hit today with the announcement that the Massachusetts Pension Reserve is pulling $2 billion out of Legg Mason.

“This is not a temporary move,” Travaglini said. “We’ve reviewed 24 years of history. The domestic equity structure is not working.”

If active management isn’t working for a large pension fund, why would it work any better for you with a much smaller margin for error?