3 ms·
The problem with this approach is that given a sufficient population of contributors, a random distribution is going to give you individuals that consistently o
by ddeck 13y ago
The problem with this approach is that given a sufficient population of contributors, a random distribution is going to give you individuals that consistently out/under perform purely by chance. This can be seen in the professional asset management industry, where:
there is strong evidence that chasing managers with strong 3 and 5 year track records is actually harmful to your portfolio health [1]
[1] http://advisorperspectives.com/dshort/guest/BP-130108-Track-Records-Are-Rubbish.php http://advisorperspectives.com/dshort/guest/BP-130108-Track-...
- eru 13y agoSo you should short-sell managers with strong 3 and 5 year track records, then?