All the good works pay off
Most fund managers must outperform to survive. When there are thousands of competitors – not to mention low-cost, passive investment options – there’s simply no other way to be noticed.
It’s easier said than done, though. Over 10 years, 70%-90% of funds fail to beat their benchmark and those that pull it off are never totally safe. Star managers move on, all managers experience bouts of under-performance and, eventually, you become a victim of your own success.
So, why would investors even bother with the sector when the odds are so stacked against us?
Because of Magellan. Magellan is the example of what can happen when everything goes right. Terrific investment performance coupled with fantastic marketing have led to a
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