Re: Evaluating Managed Funds
I'll interject something here, evaluating the risk to acheive the expected albeit uncertain returns must be evaluated as well. Sounds like a trite statement but I assure you it is not. For example if I take the "equivalent" risk of leveraging SPY by 2-1 in my portfolio but only "expect" investment returns 1.5x what I would expect with SPY by investing in my portfolio, I've taken on more risk than I need to. Hope I explained what I'm driving at. Anyway in evaluating any money managers record IMO one has to evaluate the risk that was undertaken to achieve the returns.
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