BOND FUND MANAGER OUTPERFORMANCE 3 years 71% 5 years 70% 10 years 56% STOCK FUND MANAGER OUTPERFORMANCE Percentage of Non-Index Stock Fund Managers that Outperform S&P 500 Index 3 years 29% 5 years 20 % 10 years 27 % Watch the related WEALTHTRACK episode.
Funds
PUT THE POWER OF COMPOUNDING TO WORK FOR YOU
CHUCK ROYCE & CHARLIE DREIFUS The RoyceFunds ED PERKS Franklin Income Fund (FKINX) DAVID WINTERS Wintergreen Fund (WGRNX) Watch the related WEALTHTRACK Episode.
CHARLES ROYCE: BUY SOME UNLOVED SECTORS OF THE MARKET
Buy Some Unloved Sectors Of The Market UNLOVED vs. LOVED RETURNS Annualized returns past 20 years over 3-year holding periods Unloved Funds 10.4% Loved Funds 6.4% Source: Morningstar “Unloved” Categories 2013: Large-growth funds Commodity funds Precious metals funds Kinnel’s “Unloved” Picks Primecap Odyssey Growth (POGRX) Harbor Commodity Real Return Strategy (HACMX) Oppenheimer Gold & Special Minerals (OPGSX) […]
PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT
PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT THE TARGET-DATE FUND APPROACH: > Rebalance between stocks and bonds > Buy when prices drop > Sell when prices rise Takes the emotion out of investing
CONSIDER QUANTS
CONSIDER QUANTS Consider adding mutual funds run by reputable and leading edge quantitative research and strategy firms. Two masters of the art: – Cliff Asness of AQR Capital Management – Andrew Lo of MIT and AlphaSimplex Group
ASK YOURSELF IF YOU SHOULD BE INVESTED WITH AN ACTIVE MANAGER OR A PASSIVE INDEX FUND
The Underperformance Gap: Most investors do substantially worse than the mutual funds they invest in Investors sell funds that underperform for 2-3 years Investors switch to funds with several years of outperformance Sell low/ buy high strategy is sure fire recipe for subpar results If you can’t tolerate sticking with a manager who isn’t doing […]
