hedge fund death
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Stock-Picking Fund Managers Are Having Their Worst Year In 3 Decades
There's no need for actively managed funds; these things should disappear. With the advent of technology in constructing portfolios and providing advise, financial advisers should be phased out as well.
There's no need for actively managed funds; these things should disappear. With the advent of technology in constructing portfolios and providing advise, financial advisers should be phased out as well.
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This is probably just a function of small caps doing worse than big caps. That's what happens later in bull market, or at least what happened in late 90s.
??? The market is at an all time high, nobody is doing worse, and in 1999 QQQ kept going long after SPY petered out
Who are the investors of these active management stocks funds? Retail or institutional?
" Indeed, the top active managers have delivered. For example, $US10,000 invested in the Yacktman Fund on Nov. 23, 2004, would have been worth $US27,844 on Nov. 25 of this year; the same amount invested in the S&P 500 would be worth $US21,649, according to Lipper.
Even so, active funds as a group tend to lag broad market indexes, though this year’s underperformance is extreme. In the rout of 2008, when the S&P 500 fell 38 per cent, more than half of the active large cap stock funds had declines that were greater than those of their benchmarks, Lipper found. The last time when more than half of active large cap stock managers beat their index was 2009, when the S&P 500 was up 26 per cent. That year, 55 per cent of these managers beat their benchmarks.
UNUSUALLY BAD BETS
In 2014, some recurring bad market bets were made by various active managers. Holding too much cash was one. "
??? what kind of reasoning is that? If you could have been lucky enough to pick the one good fund, you could have out performed the S&P.
my 90 year old mother has outperformed 85% of all professional money managers on wall street over the last 20 years, and a lot of that was just saving the 2/20, just investing in the Vanguard 500 index. But the salesman are out there, trying to get that 2/20 by promising out sized returns, and sure enough, just like the lottery, everybody wins it from time to time. And if you are high net worth, it must piss you off if one of your friends hits it.
I pay premium dollars to buy darts that are not available for sale to common investors (unless they have money and are willing to pay 2/20.)