Study finds small pension funds are totally cleaning up
| Jun 6th, 2010 | Filed under: Academic Research, Institutional Investing, Today's Post | By: Alpha Male |
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The performance experienced by fund investors is often quite different than the performance delivered by fund managers. For example, you often hear financial advisers saying that mutual fund investors dramatically underperform mutual funds themselves since mutual fund investors tend to jump horses – managing to land on the next poorly performing (formerly “hot”) mutual fund.
So to get a clear picture of the value created by the fund industry, it behoves researchers to actually measure the results experienced by investors, not just the returns delivered by fund managers.
Yet almost all fund research is based on databases of fund returns, not investor returns. Even attempts to get around the problem of self-reported returns in the hedge fund industry end up recreating fund returns out of holdings-level (13F) data.
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