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Show me an actively managed portfolio that consistently beats an index fund and I'll believe it. Until then, you guys can pretend to have all the inside informa
by juliangregorian 11y ago
Show me an actively managed portfolio that consistently beats an index fund and I'll believe it. Until then, you guys can pretend to have all the inside information you want, but numbers don't lie.
- pa5tabear 11y agoDon't the top hedge funds consistently outperform the market?
- theptip 11y agoAKA the survivorship bias.
- the_gastropod 11y agoYes, the top funds consistently outperform the market. No, the top funds are not the same year-to-year. Predicting which funds will out-perform is the hard (aka impossible) part.
- melling 11y agoWhat percentage of the 11,000 hedge funds are you referring to? http://www.cnbc.com/id/101955552 http://www.cnbc.com/id/101955552
- benmathes 11y agoDon't be fooled by randomness and survivorship bias. Those aren't the same funds each year. Thousands of funds trying to beat the market at a seemingly-random game? A small few will get lucky.
- spitfire 11y agoRenaissance technology.
- deleted 11y ago[deleted]
- deleted 11y ago[deleted]
- juliangregorian 11y agoProof?
- DaniFong 11y agoHow many years, and by how much?
- jschwartzi 11y agoI would be more interested in whether it will outperform in the future, and whether it will outperform before I start moving into more conservative investments. Given that I'm going to be around a while, consistent but middling performance will eventually outperform inconsistent great performance. I would hate to invest in a managed fund only to have it underperform for several years.
- encoderer 11y agoThere are many private portfolios that "beat the market." Of course, you can extend the timeline or find myriad other ways to exclude them. It's very hard to be a hedge fund and beat the market because they do not have the luxury of sitting out poor market conditions. I'm not suggesting "anybody can do it" but the study that concludes money managers underperform the market often gets stretched into "nothing beats index funds".
- Spooky23 11y agoYAFFX Anecdotally, I spend about 3 hours a week on financial research. I've averaged 13% returns since investing in high school during the 90s. Nothing wrong with index funds, but the boglehead position isn't axiomatic.