The Inverse Relationship of Fees and Performance
April 26th 2007 03:35
" After taking risk into account, do more managers than you'd see by chance outperform with persistence? Virtually every economist who studied this question answers with a resounding "no." Mike Jensen in the Sixties and Mark Carhart in the Nineties both conducted exhaustive studies of professional investors. They each conclude that in general a manager's fee, and not his skill, plays the biggest role in performance." [the higher the fee, the lower the performance] "
Eugene Fama, Jr.
| 59 |
| Vote |
subscribe to this blog