FYI: Chasing mutual fund performance suffers from a bad reputation these days. Of course, perspectives change all the time in finance. What was once considered poor form often becomes best practice and vice versa.
Leveraged buyouts and activist investors, for instance, were once looked downs on by much of the sector, but today their milder incarnations are staples of pension fund portfolios and are perceived as forces of good, not evil.
So maybe investing in the best-performing mutual funds isn’t a bad strategy. It is certainly a popular one.
The question is, how does mutual fund momentum chasing play out in the US market?
Regards,
Ted
https://blogs.cfainstitute.org/investor/2018/09/03/chasing-mutual-fund-performance-follow-the-momentum/
