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YTD Index beating managed 8/9
Old 11-29-2006, 01:06 PM   #1
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YTD Index beating managed 8/9

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With a little more than a month to go in 2006, funds that track an underlying index were ahead of actively managed funds in eight of the nine investing-style categories that investment researcher Morningstar Inc. (MORN : morningstar inc com

That's comparing each so-called style box, such as large-cap growth and small-cap value, to a respective benchmark index. Only mid-cap blend managers were ahead this year through Monday, with an average return of 11.7% vs. a gain of 8.9% for the Standard & Poor's MidCap 400 Index.
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Re: YTD Index beating managed 8/9
Old 11-29-2006, 01:23 PM   #2
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Re: YTD Index beating managed 8/9

"Mid-cap funds in general is an area where active managers differ a great deal more than the indices," said Milton Ezrati, market strategist at Lord Abbett... We think the market will continue to trend up, so that (outperformance) by mid-cap managers should continue," Ezrati said."

"Only mid-cap blend managers were ahead this year...". So for your mid-cap blend asset allocation category, make sure to pick an actively managed fund, because clearly active management is a winner in the mid-cap blend part of the market. :

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Re: YTD Index beating managed 8/9
Old 11-29-2006, 01:44 PM   #3
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Re: YTD Index beating managed 8/9

Right on, justin. I'm surprised Vanguard hasn't come out with an actively managed mid-cap fund that would fit tailor-made with that "Total Stock Market Index Minus Mid-cap Market" index fund.

"Sure our team's 1-8, but man, did you see that win?"
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Re: YTD Index beating managed 8/9
Old 11-29-2006, 02:04 PM   #4
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Re: YTD Index beating managed 8/9

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Originally Posted by terminator
"Sure our team's 1-8, but man, did you see that win?"
Well, er, ahh... you see... the er, ahh mid-cap blend sector is very specialized in terms of er, ahh... quantitative numericals and allows sophisticated active managers to exploit market inefficiencies in such a manner as to create positive alpha. We can see this time and again in certain areas of the market throughout history. Active management can always win in a niche area of the market during periods of proper market timing. :
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Re: YTD Index beating managed 8/9
Old 11-29-2006, 03:47 PM   #5
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Re: YTD Index beating managed 8/9

I wonder why they withhold from applying those advanced mid-cap methodologies and techniques from the rest of the stock market? :

BTW, I forsee a new career for you writing their marketing materials. It sounds good and deep within the writing I see honest disclosures: "Active management can always win . . . ." :P
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Re: YTD Index beating managed 8/9
Old 11-29-2006, 10:08 PM   #6
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Re: YTD Index beating managed 8/9

Quote:
Originally Posted by justin

"Only mid-cap blend managers were ahead this year...". So for your mid-cap blend asset allocation category, make sure to pick an actively managed fund, because clearly active management is a winner in the mid-cap blend part of the market. :
Of course, next year this time, maybe the small or large cap sector will be the lone winner in actively managed funds. Then they will tell us to move to active managed funds in that sector....

Quote:
Originally Posted by terminator
"Sure our team's 1-8, but man, did you see that win?"
And even that 'win' is trailing the S&P 500 index....

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Re: YTD Index beating managed 8/9
Old 11-30-2006, 05:23 AM   #7
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Re: YTD Index beating managed 8/9

Yea! But in a down market....

(At least until there is a down market)
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