Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

  • MJG August 2017
Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

M*: Active Managers' Short-Term Success Rates Have Spiked Higher

FYI: Despite short-term trends, picking good active managers is hard and keeping costs low is paramount.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=822871

Comments

  • Hi Guys,

    Most studies report that actively managed mutual funds seldom outperform a relevant benchmark over extended timeframes. For one year periods the odds are near 50/50, but over more meaningful timeframes, the odds of actively managed funds outdistancing a passive equivalent typically drop below the 20% rankings.

    These odds are unattractive from a quick and dirty prospective. However, an optimist with a little know-how and study time might interpret these data as a buying opportunity. The likelihood of picking a winning manager might be small, but it is never zero. Some effort will improve these odds.

    It is amazing how few articles appear that chronicale these rarer successful managers. We need more of that positive feedback. Here is Link to one such article:

    http://www.thinkadvisor.com/2017/04/30/these-10-actively-managed-funds-beat-sp-500-for-15?slreturn=1503503896

    Note how low costs, low turnover, and concentrated portfolios characterize this elite and tiny group. Good luck on your selections, but skill and study will enhance your chances.

    Best Regards
Sign In or Register to comment.