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