What We Are Working On This Month
  • Do Newly-Created Funds Outperform Their Stale and Bloated Competitors? -Over the years, many financial publications publish articles and research reports claiming that newly-created funds, free of previously poor purchases and not bloated with too much AUM, outperform their older and bloated in-category competitors.  My research has always found there is zero correlation between superior performance and funds that were new to market.
    The results delivered by the newcomers of 2016 were no different.  There were 289 actively managed equity funds that posted their first-ever annual returns in 2016.  While 22% delivered top quartile performance in their category, 30% produced bottom quartile returns.  Furthermore, 44% finished 2016 in the top half, and 56% finished in the bottom half.  A coin toss produces similar results.  These performance results refute the view that newly created funds, able to concentrate on a manager’s top few picks and without a bloated asset base, have a performance advantage.

Current Reports

There are no update currently available...

Archived Reports

Important Fund Changes Since Last Year
2012-05-03 12:36:29

Fund Managers Who Made a Difference
2012-03-20 12:09:06

We will look at the collective Alpha scores for every fund family broken into Domestic Equity, Foreign equity and Fixed Income. You will be able to see how your favorite families stack up.

2012 Mutual Fund Report Cards
2012-01-18 10:44:15

Over 5,000 funds in 131 fixed income and equity categories were scored against their category peers.