The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Rekenthaler:  It's All About The Bear Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, August 01, 2013

Rekenthaler: It's All About The Bear

News summary by MFWire's editors

Remember that study suggesting active fund managers should "closet index" in downturns?

Morningstar's John Rekenthaler didn't buy into the study and still doesn't.

He doesn't dispute that the math was correct. Yet he says a year by year analysis doesn't indicate how investors make investment decisions. The professors also equal-weighted the data, which counts all funds as the same.

Rekenthaler said most of the money went to big, well-known and well-promoted funds that dodged the 2000-02 crash in 2003. Capital Group's [profile] American Funds, Vanguard [profile], Dodge & Cox [profile] and Fidelity [profile] were in the top 6 of stock fund shops that brought in the most sales. The same firm names appeared in 2005.

Rekenthaler's conclusion is that bear-market performance was the driving force for which stock funds reached the top sellers list in the past 10 years. He notices the same trend with active vs. passive funds. Investors favored active funds that performed well in bear markets until 2008, when they failed to outperform the benchmark, and have been out of favor since.

To read more, click here.  

Edited by: Casey Quinlan

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use