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The issue is that some active funds do beat the market... And they do consistently. But the buyin is high and the fees are above industry averages. So people lo
by anonu 4y ago
The issue is that some active funds do beat the market... And they do consistently. But the buyin is high and the fees are above industry averages. So people look for lower cost active returns and fail.
- belter 4y agoBut normally they do it with closed money pools. In the meanwhile they normally have other money pools that offer to their customers...but the algorithms never seem to work as well for those money pools...
- huhtenberg 4y agoE.g. https://en.wikipedia.org/wiki/Renaissance_Technologies#Medallion_Fund https://en.wikipedia.org/wiki/Renaissance_Technologies#Medal... > From 1994 through mid-2014, it averaged a 71.8% annual return, before fees.
- belter 4y agoBut not for everybody... "Renaissance suffers $11b exodus with meager quant returns - https://economictimes.indiatimes.com/markets/stocks/news/setback-for-jim-simons-as-renaissance-suffers-11b-exodus-with-meager-quant-returns/articleshow/83664577.cms?from=mdr https://economictimes.indiatimes.com/markets/stocks/news/set...
- danielmarkbruce 4y agoThat is a different set of funds, with a different mandate. Same people running it, but not the core fund.
- belter 4y agoYou comment confirms the point I was trying to make.