You have no clue. Proof for idiocy beyond any imagination is today´s equity market action.
Fund managers run after each other like a herd of lemmings. Have done so in the past, will do so in the future.
There is no cure to this.
Are US mutual fund managers idiots?
- Thread starter ASusilovic
- Start date
You have no clue. Proof for idiocy beyond any imagination is today´s equity market action.
Fund managers run after each other like a herd of lemmings. Have done so in the past, will do so in the future.
There is no cure to this.
Ok, then agree to disagree - besides you should be happy that they suck so bad.
So.... your evidence for this is that the market did something which you believe it should not have if mutual fund managers were intelligent?
Not that I disagree with the ultimate conclusion, but your line of reasoning seems a bit... thin to say the least.
Not that I disagree with the ultimate conclusion, but your line of reasoning seems a bit... thin to say the least.
gotta news for ya.
not only most fund managers are idiots.
so are their clients,
politicians, priests, doctors, and the society as a whole.
each person who wanted to do something extremely good for humanity:
wilhelm reich, tesla, jesus christ, osho, jf kennedy, etc.
was killed.
the sheeple hate wealth, prosperity, health, happiness.
during the last 5,000 years or so, people demand:
misery, wars, crimes, blood, witch haunting, egoism, leaders who screw them until they have nothing, brainwashing, fake journalism.
To some extent, muslims and Asians are an exception.
Catholic countries will be devastated. its the only way for people to learn that its a terrible idea to submit yourself to corporations and church.
not only most fund managers are idiots.
so are their clients,
politicians, priests, doctors, and the society as a whole.
each person who wanted to do something extremely good for humanity:
wilhelm reich, tesla, jesus christ, osho, jf kennedy, etc.
was killed.
the sheeple hate wealth, prosperity, health, happiness.
during the last 5,000 years or so, people demand:
misery, wars, crimes, blood, witch haunting, egoism, leaders who screw them until they have nothing, brainwashing, fake journalism.
To some extent, muslims and Asians are an exception.
Catholic countries will be devastated. its the only way for people to learn that its a terrible idea to submit yourself to corporations and church.
I think Greenblatt described best what goes on in these mutual funds in his green book. If you have a 10Bn mutual fund (which is kind of on the small side) you are severely limited in what you can do. if you have 10Bn, you can invest up to 200MM in each stock (for a total of 50 stocks). If you cannot own more than 5% of a company, the company must be 4Bn in market cap. It's not like you swing these stocks around in 200MM clips and justify it easily. And this is for a 10Bn mutual fund.
By this constuct you will be tracking the market less your expenses and transaction costs. If you are 20Bn or 30Bn it's even harder to show any outperformance.
See Winton Capital Management. Over 20Bn assets, outperforms, by a wide margin.
http://www.iasg.com/groups/group/winton-capital-management/program/diversified
do you have any idea how easy is to get in and out of 20bn total position in forex majors? just need to click few times on few major pairs.
mutual funds cant trade fx. they must invest for 20 yrs in companies which may be kaput in 6 months. its the most stupid investment on earth, and exactly why its the most popular.
Yeah. They are a hedgefund who don't have the same regulations as a mutual fund.
With the creation of ETF's and discount brokers, mutual funds are an outdated investment vehicle.
