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That's not true at all! There are many instances of managed portfolios greatly outperforming index funds. There are also examples of them greatly under perfor
by nightski 7y ago
That's not true at all! There are many instances of managed portfolios greatly outperforming index funds. There are also examples of them greatly under performing. The crux is picking the right one - which is similar to the point you are making but not the same.
- lotsofpulp 7y agoHas any managed portfolio outperformed SPY over last 30 years after accounting for expenses?
- bdkoepke 7y agoSure, equal weight split between SPY, EFA, EEM, VNQ. 7.7% real return with 17.7% vol vs 7.1% real return with 17.1% vol. Sharpe for equal weight: 0.435; Sharpe for SPY: 0.415
- nightski 7y agoYes, see Renaissance Technologies Medallion Fund* which earned their employees a 66% annualized return (39% after fees) over 30 years. It's one of the most well known examples out there. [1] https://en.wikipedia.org/wiki/Renaissance_Technologies https://en.wikipedia.org/wiki/Renaissance_Technologies
- lotsofpulp 7y agoI meant those open to the public.