Responsibilities of the team, page-92

I think it depends on the sector and size. With the large ASX 200 companies that have consistent revenue the market value is pretty close to the underlying value which is why index investing works so well - it is near impossible for any investor focused on the ASX200 companies to beat the index. When it comes to the big companies the market is (almost) always right.

At the other end of market the opposite is true - the market is (almost) never right and especially when it comes to biotech. Having spent a lot of time looking at all the listed Australian biotechs I came to the conclusion that their SP almost never reflects the underlying risk adjusted value. Many companies are very overvalued, while other are seriously undervalued. There is lots of potential to pick the right stocks and do much better than any index fund.