One of the conclusions of this article is that emerging managers with hot track records fall victim to the law of large numbers. They fail to explain how Peter Lynch of Magellan Fund fame managed to stomp the market for so many years managing billions.
Want an Active Investment Manager? Here’s What to Look For By PAUL SULLIVAN
Paul Sullivan writes about strategies that the wealthy use to manage their money and their overall well-being.Paul Sullivan’s Columns »Yet investors regularly ask for a mutual fund’s track record over one, three, five years or more before putting their money in. Sure, the fund may keep going up, and the past performance is an indicator. But what happens if the fund starts to drop? Should the investor sell, or hang on because the fund did well in the past?
via What to Look For in an Active Investment Manager – NYTimes.com.