More Data Shows That Few Active Mutual Fund Managers Beat the Market

More Data Shows That Few Active Mutual Fund Managers Beat the Market

A recent article summarized data from a paper in the Financial Analysts Journal on the career paths of mutual fund managers. Not surprisingly it confirms most mutual fund managers of any tenure “generally do not outperform the market or their style benchmarks and do not display consistently superior performance.” “Even long-term managers show no ability to beat the market on a risk-adjusted basis.”

Daniel Fisher, the author of the Forbes article quotes Gary Porter saying “what investors have been doing, in droves, is moving out of actively managed funds and into passive portfolios and ETFs. While you’re not getting the upside of a manager who’s beating the market, you also avoid what’s more common, which is managers underperforming.”

A link to the full article can be found at Forbes.com.

A link to the full Financial Analyst Journal article can be found here.