The miscalculation that can sink actively managed funds’ performance.
Jack Shannon, senior manager research analyst for Morningstar Research Services, discusses how often active fund managers succeeded in picking top stocks. He also explains whether this information can help investors find better funds.
00:47 Are Fund Managers Good at Making Big Stock Bets?
02:03 Fund Managers’ Hit Rates
03:12 Active Fund Managers’ vs. Passive Index Fund Managers’ Stock Picking Performance
04:34 How an Active Mutual Fund Can Underperform Despite Holding Winning Stocks
05:48 High Hit Rates and Topping the Index
06:50 When High Hit Rates Matter More or Less
07:50 Can Investors Set It and Forget It?
09:33 Do-it-Yourself Investors Looking for Funds with High Hit Rates
Read about topics from this episode.
Mutual Fund Managers Are Wrong More Than They’re Right https://www.morningstar.com/funds/mutual-fund-managers-are-wrong-more-than-theyre-right
Mutual Fund Manager Stock Hit Rates https://www.morningstar.com/lp/stock-hit-rates
Betting Big on Stocks Rarely Beats Boring Investing https://www.morningstar.com/stocks/betting-big-stocks-rarely-beats-boring-investing-2
10 Stocks the Best Fund Managers Have Been Buying https://www.morningstar.com/stocks/10-stocks-best-fund-managers-have-been-buying
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Read what our team is writing:
Ivanna Hampton https://www.morningstar.com/people/ivanna-hampton
Jack Shannon https://www.morningstar.com/people/jack-shannon
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