Image by Getty Images via DaylifeMark Hlbert of the New York Times provides an interesting, if not depressing
report on the performance of mutual fund managers.
"There was once a small number of fund managers with genuine market-beating abilities, as judged by having past performance so good that their records could not be attributed to luck alone. But virtually none remain today. Index funds are the only rational alternative for almost all mutual fund investors, according to the study’s findings."
This information is taken from a year old study, “False Discoveries in Mutual Fund Performance: Measuring Luck in Estimating Alphas, " available
here.
