DanielLC comments on Reliably wrong - Less Wrong

2 Post author: NancyLebovitz 09 December 2010 02:46PM

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Comment author: DanielLC 10 December 2010 10:50:00PM 0 points [-]

I've read that actively managed mutual funds are, on average, slightly worse than random chance allows.

Comment author: JGWeissman 10 December 2010 11:02:32PM 4 points [-]

This could result from adding management fees to "as bad as random" performance.

Comment author: DanielLC 12 December 2010 04:34:45AM 2 points [-]

No. It was talking just about their stock choices. It specifically commented that this was worse than a monkey throwing darts.

Comment author: wedrifid 12 December 2010 08:05:25AM * 0 points [-]

That seems plausible. Their own behavior, bulk and biased incentives could well be enough to put them very slightly behind.

Comment author: Vaniver 10 December 2010 11:36:19PM 0 points [-]

This and transaction costs.