Note: This article is being re-featured as part of Morningstar's December 2014 Guide to Better Investment Picking special report. This article originally appeared Dec. 2, 2014.

Once it was Fidelity Magellan (FMAGX). Then it was Legg Mason Value (LMVTX). Next were American Funds’ domestic-equity funds and then Fairholme Fund (FAIRX). Each was a flag-bearer for the cause of active management and then each was later abandoned by investors when it failed to meet expectations. These setbacks were met with a slew of articles on how active management was a failure.