90% of fund managers beat the market — but their shareholders don’t

Discussion in 'Wall St. News' started by Banjo, Jan 21, 2015.

  1. Banjo

    Banjo

  2. Yes, that's why an old method is to trade the mutual fund manager stocks to earn better returns than the mutual funds. The key is to discern the purpose of a mutual fund and the purpose someone employed in the business. An investor seeks return for their money and a manager seeks a profitable living. The two are not very well aligned.

    Decades ago as I was testing brokers, I ended up doing my own trading. I am light years ahead for than one decision. My reasoning - there was likely someone who would be able to earn better returns than I; but my account was too small for them to worry about. Now my account is big enough for them to worry about, but I don't trust them. Most, like traders, have flamed out.
     
  3. robert000

    robert000

    Maybe he saw the handwriting on the wall. With lagging performance, it was inevitable his investors would eventually pull out the $100 mill.
    70-642
    I'm guessing his poor results in December caused him to revenge trade to try to make back his losses with devastating consequences.