FYI: Most research shows that 90 to 95 percent of the risk-return profile of an investment portfolio comes from the asset allocation decision, with things like tactical rebalancing and manager selection combining to make up that last meager 5 to 10 percent. For someone who has spent the vast majority of his professional career — literally thousands of hours each year — researching and selecting asset management firms, those numbers have always been a source of consternation and more than an occasional pang of self-doubt.
There’s not a lot of impact from all that effort.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1gf2trc7c5wvp/Manager-Research-Matters-Even-More-Than-You-Think
