New Books Network Joe Wiggins, "The Intelligent Fund Investor: Practical Steps for Better Results in Active and Passive Funds" (Harriman House, 2022)
Oct 16, 2025
Joe Wiggins, an experienced portfolio manager and behavioral finance expert, dives into the complexities of fund investing. He discusses why many investors fall for star-manager traps and thematic fund allure. Wiggins shares his insights on balancing active and passive funds, emphasizing a disciplined long-term approach. He warns against the dangers of smooth performance and the necessity of understanding one’s biases. Plus, he offers actionable tips like avoiding unnecessary complexity and utilizing friction to improve decision-making.
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Avoid Thematic Funds And Star Managers
- Avoid thematic funds because compelling stories are usually already priced in and lead to poor future returns.
- Cut out star managers too, since large asset size, mean reversion, and hubris often destroy future performance.
Choose Active Only If You Can Weather Drawdowns
- Decide whether you can tolerate long periods of underperformance before choosing active funds; if not, prefer passive.
- Consider a starting split like 50% passive / 50% active and tilt based on market structure and valuations.
Market Structure Changes Active Odds
- Market structure alters active manager success probabilities; UK outperformance happened when small and mid caps led the market.
- Analyze equal-weight vs market-cap performance to see whether active strategies have better odds.
