Tag Archives: fund persistence
Can Top-Performing Funds Stay on Top over Time?
Many market participants attempt to identify future top-performing funds using managers’ track records. This practice implicitly assumes that managers’ successful track records reflect skill and that their superior performance will be repeated in the future. Since genuine skill is likely to persist, one key measure of active management skill is the consistency of a fund’s…
- Categories Equities
- Other Tags
2019 Mid-Year Persistence Scorecard – Key Highlights
When it comes to investing, market participants often consider past performance to be indicative of future results. The same goes for fund selection. Notwithstanding the evidence showing that most active managers in most regions typically underperformed their benchmarks, consistently beating peers is one way to differentiate a manager’s luck from skill. Here are a few…
- Categories Strategy
- Other Tags
The Skill of Champions in Sports & Active Management
The last few days have been a feast of entertainment for the sporting enthusiast; the Champions League Final, the Monaco Grand Prix, and the NBA Conference Finals were all on the menu. While the sports represented are distinct, these events have something notable in common: the persistence of their participants. The same two teams reached…
- Categories Equities, Fixed Income, Strategy
- Other Tags
Introducing the Persistence Scorecard for Latin America
Following similar studies performed by S&P Dow Jones Indices on active funds in the U.S. and Australia, we introduce the Persistence Scorecard to the Latin America region. The two aforementioned studies have demonstrated that top-performing active funds have little chance of repeating that success in subsequent years. To determine if similar conclusions can be made…
- Categories Equities, Fixed Income
- Other Tags