FYI:
An overwhelming body of evidence demonstrates that the majority of investors who engage in the active management of stock and bond portfolios underperform with great persistence. This evidence led Charles Ellis to call active management the “loser’s game” — while it’s possible to win, the odds of it are so poor that it isn’t prudent to try.
What’s more, the evidence even applies to endowments and investors in tax-advantaged accounts, such as IRAs and 401(k) plans, who don’t pay taxes. However, the already-poor odds of winning become dramatically worse for taxable investors
Regards,
Ted
http://mutualfunds.com/education/active-managed-mutual-funds-and-the-negative-alpha-of-taxes/
