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by DeathArrow 1693 days ago
>How is a regular guy going to achieve the same results as a hedge fund with a 10 million dollar portfolio?

Maybe by finding a well managed small fund and buying into it?

1 comments

> Maybe by finding a well managed small fund and buying into it?

Just because a fund manager is good now, does not mean they'll be good in the future. It's the same situation as with stocks: how do you know when to jump ship?

Further, over longer periods of time, most fund managers don't beat the market average:

* https://www.ifa.com/articles/despite_brief_reprieve_2018_spi...

And just because a few funds do manage to beat the average, it's hard to tell that they are ahead of time. Over the last 40-50 years (in the US) there have been some that have had excellent results—for a while. Until they didn't ("Chasing Top Fund Managers"):

* https://www.youtube.com/watch?v=p6HrepdLSu4 (18m34s)

* https://rationalreminder.ca/podcast/136 (topic starts at ~15m)

Plenty of peer-reviewed papers at the bottom of that second (podcast) link.