Market Ethos - December 11th, 2017

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Performance Chasing

 

Did you know the average investor’s annual return is about 2% below the average fund return? Much of this variance is attributable to chasing performance, as assets pile into a fund that has had a good performance run just to see that performance mean revert. This Ethos provides some cold hard facts on performance chasing and provides a more constructive framework to review existing or new managers for your portfolio.