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Post by Chu Chu on Apr 15, 2020 12:15:20 GMT -5
About 1 in 10 actively managed funds beat the total stock market average each year. The problem is, it is a different fund each year! None of them consistently beat the average, and that is the problem.
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Post by WCHC Sports on Apr 15, 2020 12:28:38 GMT -5
Two minor points during my few years working in/around the markets:
- In much the same way that actively managed funds could potentially beat the market, their low success rates indicate that you theoretically have a better chance of success taking ALL of the actively managed funds' positions and doing the exact opposite.
- Further to that point, you'd be surprised (or maybe not) that many funds out there simply take the SEC-mandated public disclosure of underlying positions by the Fund Du Jour (or whomever is doing well) and simply copy it after the quarterly disclosures. I believe only short positions are exempt.
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