It needs more than one or two CTA’s are not enough to protect portfolios when markets are in turmoil.
Funds managed by European boutique asset managers do tend to outperform those managed by Europe’s largest fund management
Given that the dispersion of returns increases with uncertainty, active managers tend to do better in challenging times. For example, in 2001 and 2003, and again in 2008 and 2009, the percentage of funds outperforming noticeably increased in the US.
“Only 47.7% of stocks generated a life-time return that match one-month treasury bills.The reason why so many mutual funds fail to beat the market is because so many stocks fail to beat the market.” — The Irrelevant Investor Many mutual funds fail to beat the market because so many stocks fail to beat the market. …