MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

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

Sign In Register

Categories

In this Discussion

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

Larry Swedroe: The Volatility Of Active Management

TedTed
in Fund Discussions
FYI: S&P Dow Jones Indices has long provided a great service to investors with its semi-annual S&P Indices Versus Active (SPIVA) scorecards. The evidence offered in these reports has shown time and again that, regardless of the asset class, the vast majority of active managers persistently fail to outperform their benchmarks, and that there is little to no persistence of performance beyond the randomly expected.
Regards,
Ted
http://mutualfunds.com/expert-analysis/the-volatility-of-active-management/

Comments

  • jptak
    I think persistence studies of this sort are a bit of a red herring when you consider that not even long-term 'successful' active funds would clear the bar they set. They're measuring something but I'm not sure what it proves. More thoughts here.
    http://syouth1.tumblr.com/post/152422482225/consistency-is-a-mirage

    Respectfully submitted,

    Jeff Ptak
    Morningstar
  • davidrmorandavidrmoran
    edited November 2016
    This Ptak site is something to read; what a find. Check out also (e.g.) 'When Winners Fail'.

    Maybe the swamp of lies that makes up so much of the Web will be successfully drained, for keeps, by the savviest analytical math work of the savviest.
Sign In or Register to comment.