Don's Monthly Newsletter: "What Do You Say When Performance Is Bad?" - March 2015
On March 14, 2015, a Jeff Sommer article entitled ‘Mutual Funds Routing the Market? Zero’ appeared in the New York Times. The article flatly stated that over the last six years, “No mutual fund managers have …… managed to outperform the rising market consistently.” Sommer’s findings were based upon a study entitled ‘Does Past Performance Matter? The Persistence Scorecard.’ S & P Dow Jones Indices conducted the study. Going back to 2009, nearly 3000 broad, actively managed domestic stock mutual funds were regularly winnowed based on performance. Only two funds managed to stay in the top quarter for five years running.