Active Stock Picking Is Getting Harder
Many Happy Returns
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The Paradox of Active Fund Management
This chapter examines the disappointing performance of active fund managers, revealing that a vast majority failed to outperform their benchmarks during both a bull market and the subsequent crash in 2022. It discusses the contrasting outcomes of equity and fixed income funds, illustrating how despite skilled management, many active funds are hindered by market conditions and high fees. The conversation culminates in an exploration of the challenges investors face in selecting genuinely effective fund managers amid a landscape where past performance often leads to misleading expectations.
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