Reggie Middleton

Yes, Fund Managers Really Do Underperform

It is nearly impossible for long only equity fund managers to diversify in this market, since nearly all equities have practically been moving in unison. In addition, diversification does not necessarily reduce risk Finally, beating a benchmark is useless industry speak, investors want to make money, not beat a benchmark. You could have beat the S&P this year and have lost your clients nearly half of their money. With friends like those, who needs enemies.

For those who really think that beating a benchmark means anything and cannot be done regularly (efficient market adherents), I have beat the market every year I have invested while assuming much less risk. This year I have killed it: see boombustblog.com/index...