Manager Performance is Mean Reverting.
Leave a Comment so far
Leave a comment
October 10, 2007, 1:41 pm
Filed under: Investing
Filed under: Investing
Did you know that if you invested your monies in the best performing money mangers based on trailing Three Year returns, that there’s an 85% chance these same funds will under-perform the next three yers while taking higher risks?
In other words, if you invested in one star Morningstar funds, you’d stand a damn good chance of out-performing the 5 stars 85% of the time. Good things get less good over time, and bad things get better. There is no scientific or statistical evidence for the persistence of performance.
Advertisement
Leave a Comment
Leave a Comment so far
Leave a comment
