Is It Luck or Skill? - Show 226

Wednesday, January 25, 2017 1,290 views

One of the problems with identifying a good fund manager is distinguishing between skill and luck. Retired fund manager Con Keating says in his experience luck played a much bigger part than most of his colleagues were prepared to admit.

We have recently published numerous studies analyzing the historical performance of many major actively managed mutual fund companies and have come to a resounding conclusion: they have failed to deliver on the value proposition they profess, which is to reliably outperform a risk comparable benchmark.

The fund families we have analyzed include:

 

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