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Simple question then: Does anyone run a fund based on regression to the mean for quarterly performance?
by DannoHung 11y ago
Simple question then: Does anyone run a fund based on regression to the mean for quarterly performance?
- RyanZAG 11y ago'Regression to the mean' would be buying a stock that is currently cheap because of mistakes last quarter yet still has good fundamentals. So we'd expect it to recover based on those fundamentals. It's what a lot of people do already.
- mistermann 11y agoDogs of the Dow would be based on this general premise would it not?
- lmm 11y agoYes and no - AIUI they're "dogs" based on having limited future growth potential rather than having had a bad quarter.