123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Marketing >> View Article

Role Of Fund Manager

Profile Picture
By Author: Anthony Green
Total Articles: 36
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

1. Skepticism about past returns is crucial. The truth is, much as you may wish you could know which funds will be hot, you can�t and neither can the legions of advisers and publications that claim they can. That�s why building a portfolio around index funds isn�t really settling for average. It�s just refusing to believe in magic.

2. By day we write about Six Funds to Buy now. By night, we invest in sensible index funds. Unfortunately, pro-index fund stories don�t sell magazines.

3. Statisticians will tell you that you need 20 years worth of data that�s right, two full decades to draw statistically meaningful conclusions. Anything less, they say, and you have little to hang your hat on. But here�s the problem for fund investors: After 20 successful years of managing a mutual fund, most managers are ready to retire. In fact, only 22 U.S. stock funds have had the same manager on board for at least two decades.

4. There is one final problem in selecting a winning manager. According to Richard A. Brealey, you probably need at least 25 years of fund performance ...
... to distinguish at the 95% significance level whether a manager has above average competence. Another commentator accepted the 25-year time frame, but only if the pension executive is using the perfect benchmark for that manager. Using a less than perfect benchmark may increase the observation time to 80 years.

5. Former Oakmark Fund manager Bob Sanborn, Yackman Fund�s Don Yackman, and former Internet Fund manager Ryan Jacob; these oncerevered fund managers have fallen to earth.

6. People exaggerate their own skills. They are overoptimistic about their prospects and overconfident about their guesses, including which managers to pick.

7. Studies show either that most managers cannot outperform passive strategies, or that if there is a margin of superiority, it is small. It will take Joe Dart�s entire working career to get to the point where statistics will confirm his true ability. In the end, it is likely that the margin of superiority that any professional manager can add is so slight that the statistician will not easily be able to detect it.

8. Most depressing of all, the superstar fund managers in the early 1990s had a disconcerting habit of fading from supernova to black hole: Rod Linafelter, Roger Engemann, Richard Fontaine, John Hartwell, John Kaweske, Heiko Thieme. If you thought they were great, you had only to wait a year and look again: Now they were terrible.

9. Yet even the smartest, most determined fund-picker can�t escape a host of nasty surprises. Next time you�re tempted to buy anything other than an index fund, remember this and think again.

10. None of us is as smart as all of us. After twenty years of watching investment practitioners dance around the fire shaking their feathered sticks, observe that far too many of their patients die and that the turnover of medicine men is rather high. There must be a better way.

Total Views: 343Word Count: 493See All articles From Author

Add Comment

Marketing Articles

1. Navigating The Landscape Of Hiring Solutions: A Comprehensive Guide
Author: Md Irfan Munsi

2. How To Repurpose Video Content Across Multiple Channels
Author: Andy Beohar

3. Chrome Extensions For Optimizing Business Functionality And Productivity
Author: iDigitize

4. Đèn Led Chiếu Sáng Sân Pickleball
Author: Vina Lighting

5. Reaching New Heights: Advertising Essentials For Pakistan
Author: Waleed Qaisar

6. Digital Marketing For Dentists: Smashing Strategies To Get More Patients
Author: dental online marketing

7. The Best Ways To Showcase Sponsors On Your Event Wall
Author: richard

8. The Rise Of Digital Marketing In India: A Spotlight On Hobo E Services
Author: Hobo e Services

9. Inspiring Instagram Wall Ideas For Your Home Or Office Space
Author: Richard

10. Best Full Stack Developer Course In Pune: Learn And Get Placed With Syntaxlevelup
Author: atherv sir

11. The Growing Importance Of M&a In The Marketing Agency Landscape
Author: M&A Marketing Agency

12. 7 Powerful Strategies To Grow Your Business With Soul Swastik’s Digital Marketing Services In Bangalore
Author: Soul Swastik

13. Ai Detection: What It Is And How It Works
Author: TechDogs

14. 7 Best Ai Tools For Social Media Marketing
Author: TechDogs

15. Digital Marketing Course At Digital Brolly
Author: Digital brolly

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: