FYI: In 2005, three academics published a remarkable paper. "Judging Fund Managers by the Company They Keep", by Randolph Cohen, Joshua Coval, and Lubos Pastor, debuted a powerful method of forecasting the future performance of U.S. equity funds. When the authors sorted funds by the paper's new measure, the bucket that contained the lowest-decile funds recorded the single lowest average future alpha, the bucket with the second-lowest decile posted the second-lowest alpha, and so forth. With one minor exception, the pattern was unbroken.
Regards,
Ted
https://www.morningstar.com/articles/949104/the-best-predictor-of-stock-fund-performance
