I’ve read that actively managed mutual funds are, on average, slightly worse than random chance allows.
This could result from adding management fees to “as bad as random” performance.
No. It was talking just about their stock choices. It specifically commented that this was worse than a monkey throwing darts.
That seems plausible. Their own behavior, bulk and biased incentives could well be enough to put them very slightly behind.
This and transaction costs.
I’ve read that actively managed mutual funds are, on average, slightly worse than random chance allows.
This could result from adding management fees to “as bad as random” performance.
No. It was talking just about their stock choices. It specifically commented that this was worse than a monkey throwing darts.
That seems plausible. Their own behavior, bulk and biased incentives could well be enough to put them very slightly behind.
This and transaction costs.