On 9/11/07, Daniel Davies <[EMAIL PROTECTED]> wrote: > basically, this isn't the personal finance discussion list and anyone > wanting retirement savings advice is on their own as far as I'm concerned. > But I don't think it makes sense to ignore the existence of the fund > industry or to assume that it's all built on fibs. It isn't.
Well the fund industry is built on one HUGE lie: that the industry as a whole can "outperform" the market. That makes absolutely no sense in a zero-sum game. Here's one idiotic piece from the NYT: http://www.nytimes.com/2007/09/09/business/yourmoney/09stra.html ------------------------snip What SAT Scores Say About Your Hedge Fund IF investors want a performance edge in their hedge funds, they may want to do a little background research on the managers: look for those who attended colleges with relatively high SAT scores. ........................... The researchers found a "strong positive relation" between a hedge fund's performance and the average SAT score at its manager's school. To put the relationship into context, the researchers offer this illustration: "Everything else being the same, a manager from an undergraduate institution with a 200-point higher SAT — for instance, from Yale University, with an SAT of 1480 at the end of our study period, instead of from George Washington University, with an SAT of 1280 — can expect to earn 0.73 percent more per year." Everything else being the same indeed! And how much does this "strong positive relation" buy you? A princely 0.73% p.a. -raghu.
