Geoff Considine

Judging Fund Performance: Part 2

You are right about how hard it is to judge a manager. This is part of the challenge for investors in active funds. If you can start by demonstrating that the risk/return level are consistent with a static asset allocation, that is an important data point. You are correct that the thumbprint of skill could be the ability to rotate sectors--but how do we convince ourselves of this? One way is to look at past asset allocations and how that have changed vs. broader market and index performance. This is a major undertaking and I find it harder than just analyzing investments.