New Books in Economics Joe Wiggins, "The Intelligent Fund Investor: Practical Steps for Better Results in Active and Passive Funds" (Harriman House, 2022)
Oct 16, 2025
Joe Wiggins, a portfolio manager and behavioral finance expert, shares insights from his book, focusing on the complexities of fund investing. He warns against the allure of past performance and the pitfalls of investing with star managers. Wiggins discusses the importance of understanding market structures and the risks of thematic funds. He highlights the need for a long-term perspective and provides practical steps for improving investment decisions, including evaluating manager processes and avoiding overly complex strategies.
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Avoid Thematic Fund Fads
- Avoid thematic funds because their compelling stories usually arrive after prices already reflect the narrative.
- Excluding thematic funds reduces noise and prevents buying assets with story-driven, overpriced returns.
Beware Big-Star Managers
- Avoid “star” managers with huge assets because scale often destroys the original opportunity set and promotes hubris.
- Cut managers whose size and media profile make consistent future outperformance unlikely.
Decide If You Can Endure Active Lows
- Only choose active funds if you can tolerate long periods of underperformance and resist trading on short-term dips.
- Consider a starting allocation like 50% passive and 50% active, adjusting for market structure and valuations.
