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M*: The Fund Winners Curse Is An Optical Illusion

TedTed
edited October 2014 in Fund Discussions
FYI: Just because winners decline doesn't make them a bad choice.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=667868
How All the Funds Rank, Then and 10 Years Later
http://online.wsj.com/news/interactive/IFRANKING2014090820140906?ref=SB10001424052970203523204580116012154265320

Comments

  • Ha, bond-related except for Romick and Ahlsten and FJames and Ivy S&T guys and maybe a very few others. I guess I better ditch Tillinghast now that M* has again downgraded FLPSX. Wait, what? M* shows 4*. Ah, 3* ... for last 3y.
  • In my gradually expanding experience, buying 5* funds in fund categories (not including sector funds, where one has to get the sector plus the manager right), adds a bit to performance. Must admit that the health care sector seems a lock, and I think that health biotech will prove to have been a "lock" for anyone with a ten year horizon.
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