No. of Recommendations: 5
Yet somehow, the S&P500 outperforms 95+% of all managed funds in the medium term, and outperforms 99++% of all managed funds in the long term.
Fees matter. As well as trading costs and cash allocations.
To be a little more generous than you usually hear, before fees and trading costs slightly more than half of fund managers do actually beat the S&P 500 index. (this sounds impossible, but bear in mind that not all funds are the same size, and not all money is managed through funds, and not all stocks are in the S&P 500). In particular, their buys tend to be pretty good on average, and their sales not as well thought out.
Jim
