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Fund D'oh: Only 8 % Of Large Growth Managers Are Beating The Indexes

Comments

  • cman
    These media indexologists remind me of the unbearable baseball fans that pick some mid season statistic (say lowest average ERA for the team in their league for the season) to rah-rah about until their pitchers get beaten up over the next month or two for which they have a lot of excuses and pick some favorable batting statistic to crow about next until...

    The relative performance of large growth index funds when they go up is why you use them if you have a long time horizon. The relative performance of the small caps when they go down is why you need risk management from active managers when you have smaller time horizons to be able to recover from a sector or overall market meltdown.

    But the fun of baseball more than the sport itself is wearing your team on your sleeve to mindlessly gloat about and diss the fans of the other team.:-)

    D'oh.
  • BobCBobC
    For a lot of investors, the more meaningful data is how actively-managed funds perform during periods of high volatility. For example, I might be happy to get 80-90% of the upside of the index if I also get a very low percentage of downside, too. In 2008, many of them did not deliver as expected, but a decent percentage did. Those are the ones that are attractive to some of us.
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