Quote:
Originally Posted by Balticfox
I wasn't the one who made that argument. I would sooner trust a portfolio manager with a long above average track record to beat the market than an index selected not to beat the average but to be the average. Yes, the statistical evidence for my preference is lacking but I'd rather choose an experienced, intelligent investor to manage my portfolio than the chimpanzee who beat the market the most by throwing darts.
Because every investor an edge, and every single hedge fund manager can make a very good case why his strategy will deliver the superior risk adjusted returns. Only some (a very few?) succeed though.
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The thing about chimpanzees, though, is that you don't have to pay them very much. The results show over and over that the funds with the highest returns are the ones with the lowest fees.
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