Mutual Fund Managers’ Skill or Lack Thereof

By on December 28, 2009

Eugene Fama and Kenneth French, Professors of Finance, performed an extensive review of mutual fund manager’s results to determine if there is any skill involved. It takes them awhile to get to the point, providing the in-depth methodology and analysis they used to arrive at their conclusion. They examine the results before and after expenses and conclude that strong past performance is probably due to chance.

Felix Salmon, Reuters, also comments on the French and Fama study, “as you might expect from research sponsored by an index-fund company, it shows that active mutual-fund managers fail to outperform the market. But at least it does so with pretty charts.”


Fama/French Forum



  1. Josh Clark, Squirrel Hill

    December 28, 2009 at 5:30 pm

    Just happened upon your blog while doing a search for "Prechter".

    I noticed the picture of downtown Pittsburgh on the blog.

    A Pittsburgh who know who Robert Prechter is! I'm in shock!

  2. stocksystm

    December 29, 2009 at 5:13 am

    Good eye Josh! You're the first person to point out where the photo was taken and for that you have won a prize of $50.00. E-mail your address to and I'll send you your winnings.

    I'm not actually from Pittsburgh, but my fiance was born there. I took the photo 1 1/2 years ago during a visit.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>