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Posts Tagged fund managers
If we were fund managers we’d be ?fund manager of the year 2010?
I don’t normally read the newspaper (though I do read a lot on the internet so I guess that’s not 100% accurate) but on my way home from 3 weeks holiday in Europe I found myself reading the Financial review on the Bangkok – Sydney leg of our journey.
I read with some interest an article about the ‘2010 fund manager of the year’. While we do operate in the ‘managed funds’ space, what we offer isn’t strictly speaking a managed fund, never the less I wanted to read about what it took to be fund manager of the year.
Quote: 1 billion dollars, amount of money, financial planners, fund managers, inception, managed accounts, outperformance
Why fund managers will always lose and why they will not tell you about this
It is not known by most people and fund, hedge and bank managers make it even harder are and will make it even harder to find this info that I am about to give you: fund managers will never beat the stock market (nor will any human person but that is a slight different subject that if you are interested, I recommend reading “Reminiscences of a stock operator” that tells the story of Jesse Livermore, one of the greatest trader ever).
Have you ever wondered why a fund manager that has an index as a guide to its investments and direct comparison does not buy directly an ETF from the index instead of trying to replicate its movements by choosing a lot of different securities? Because then, people wouldn’t need them would they? They could just go out in the market and buy these ETFs by themselves! But that is not all; there is another factor that I would like to point out so you will begin to understand why a fund manager will never beat the stock market. Note, he can perform better one year or another, but he won’t be able to sustain that.
Quote: bank managers, etfs, fund managers, human person, jesse livermore, reminiscences of a stock operator, stock index