Do you always have a limit order going?

[Boho]

I read that hedge fund managers are allowed to do risky things that aren't allowed with regular funds. I wouldn't compare the two especially when there are studies that are more on point, like the 60/40 one I linked to.

https://www.sec.gov/answers/hedge.htm
"Unlike mutual funds, hedge funds are not subject to some of the regulations that are designed to protect investors."

 

[Boho]

Everybody thinks their managed funds are above average or will be.

I mean that my portfolio as a whole, and everyone else's, is better than the unspecified "managed fund" that they have competing against an index fund in these useless studies.

 

[samclem]

I mean that my portfolio as a whole, and everyone else's, is better than the average-of-all-managed-funds that they have competing against an index fund in these useless studies.

Are you even reading the links supplied by people or is it too much work? Look at them. The index funds beat managed funds that are of the same asset type (large stocks, small stocks, bond funds, etc). Maybe you think your portfolio of "more than likely to lag index funds" will perform better as a portfolio, than the aggregate results of the funds in it. It might, but many folks know already about the advantages of a balanced portfolio. You can buy low-cots index funds that are already like that--they have all the major asset types and they rebalance automatically. They do very well, and they do better than the portfolios of 80+% of active managers/investors with their portfolios of actively-managed funds.

 

[ERD50]

Correct, it wouldn't matter. And neither does comparing a random managed fund with an index. Nobody chooses one managed fund at random as their only investment. I choose managed funds after cross checking their ratings with numerous analysts who rate them. Then I have other reasons for liking the funds, and I make sure my funds work together to make a balanced portfolio. Find a guy who does that and compare his portfolio's performance with a single index fund and see who wins.

Now we are down to something simple. You're on!

Start a new thread, select your special, highly rated funds that you like for other reasons, and allocate a cool million in play money to them. Let's track them each quarter.

If you want to rebalance, found a better fund, whatever - post the changes before market close.

My bet - $1,000,000 SPY ETF. Done and done.

-ERD50

 

[Boho]

Are you even reading the links supplied by people or is it too much work? Look at them. The index funds beat managed funds that are of the same asset type

No, I didn't open all three links that someone posted and read the pages in their entirety. I opened them just now to search for "asset type" and couldn't find it but it's an important detail and I'd like to read about that. Could you provide a link?

 

[Boho]

Now we are down to something simple. You're on!

Start a new thread, select your special, highly rated funds that you like for other reasons, and allocate a cool million in play money to them. Let's track them each quarter.

If you want to rebalance, found a better fund, whatever - post the changes before market close.

My bet - $1,000,000 SPY ETF. Done and done.

-ERD50

Let me see if I can calculate the previous years' performance of my funds (which I didn't have last year) compared with an index. I'll just concede if I come out behind and save us some trouble.

 

[MRG]

Are you even reading the links supplied by people or is it too much work? Look at them. The index funds beat managed funds that are of the same asset type (large stocks, small stocks, bond funds, etc). Maybe you think your portfolio of "more than likely to lag index funds" will perform better as a portfolio, than the aggregate results of the funds in it. It might, but many folks know already about the advantages of a balanced portfolio. You can buy low-cots index funds that are already like that--they have all the major asset types and they rebalance automatically. They do very well, and they do better than the portfolios of 80+% of active managers/investors with their portfolios of actively-managed funds.

He's freely feeding, no time for reading.

 

[Boho]

He's freely feeding, no time for reading.

Even with my Rock Paper Scissors talents I'm unable to figure out what that means. Could you explain? I need to know whether I should report that post.

 

[MRG]

Even with my Rock Paper Scissors talents I'm unable to figure out what that means. Could you explain? I need to know whether I should report that post.

Please do.

 

[ERD50]

Let me see if I can calculate the previous years' performance of my funds (which I didn't have last year) compared with an index. I'll just concede if I come out behind and save us some trouble.

Ummm, I can win every time if you tell me your Rock Paper Scissors pick beforehand.

It shouldn't be too hard to pick funds that beat the S&P last year, doesn't require extraordinary skills at all!

We want to see if you can pick funds today, that will beat the S&P in the years to come.

OK, this officially stopped being fun. Bye!

-ERD50

 

[Boho]

Ummm, I can win every time if you tell me your Rock Paper Scissors pick beforehand.

It shouldn't be too hard to pick funds that beat the S&P last year, doesn't require extraordinary skills at all!

We want to see if you can pick funds today, that will beat the S&P in the years to come.

OK, this officially stopped being fun. Bye!

-ERD50

I wasn't going to claim I won just because I won the previous year in retrospect. I was just going to claim I lost if I lost. If I won the previous year, we'd have to do it for the next year. But not doing it is easier, so whatever.

 

[easysurfer]

Now we are down to something simple. You're on!

Start a new thread, select your special, highly rated funds that you like for other reasons, and allocate a cool million in play money to them. Let's track them each quarter.

If you want to rebalance, found a better fund, whatever - post the changes before market close.

My bet - $1,000,000 SPY ETF. Done and done.

-ERD50

How about something like this for Boho and ERD50 (and whomever else that wants to play)?

Mutual Fund Simulator - Free stock market game - MarketWatch.com

Holy smokes Batman! What do we have here? A friendly duel for bragging rights?

 

[Boho]

How about something like this for Boho and ERD50 (and whomever else that wants to play)?

Mutual Fund Simulator - Free stock market game - MarketWatch.com

Holy smokes Batman! What do we have here? A friendly duel for bragging rights?

I tried registering.

"This feature is temporarily unavailable as we upgrade our systems.
We appreciate your patience."

 

[samclem]

No, I didn't open all three links that someone posted and read the pages in their entirety. I opened them just now to search for "asset type" and couldn't find it but it's an important detail and I'd like to read about that. Could you provide a link?

This post, first link, "Category" in that paper = "Asset Type". And you can find plenty of other real research and real-world results that points out the same thing. Or read "Random Walk."

Good luck, Boho.

 

[Boho]

This post, first link, "Category" in that paper = "Asset Type".

OK, I see.

I clicked the first link and looked at Exhibit 1 and it says that the lowest cost funds outperformed the highest cost funds in all but one category over a 10 year period. Is that what I should be looking at?

I favor low cost funds. And if I want to be a stickler for clarity I'd say that there's no comparison with index funds in that chart and that the text calling it an "Active/Passive Barometer" is inconsistent with the table title which says "Active Funds’ Success Rate by Category." Lower cost doesn't mean index or passive.

 

[easysurfer]

I tried registering.

"This feature is temporarily unavailable as we upgrade our systems.
We appreciate your patience."

Yeah. Looks unavailable. Anyhow, you get the idea.

Here's another one which hopefully is available:

http://www.simvest.com/

http://www.simvest.com/stock-market-game/create-a-contest.php

http://www.simvest.com/help/virtual-trading-faq.php

This could be both fun and educational.

 

[samclem]

I clicked the first link and looked at Exhibit 1 and it says that the lowest cost funds outperformed the highest cost funds in all but one category over a 10 year period. Is that what I should be looking at?

I favor low cost funds. And if I want to be a stickler for clarity I'd say that there's no comparison with index funds in that chart and that the text calling it an "Active/Passive Barometer" is inconsistent with the table title which says "Active Funds’ Success Rate by Category." Lower cost doesn't mean index or passive.

Again, you aren't reading or understanding the information on that page. It very clearly addresses the exact point you are making. I'm done with this thread.

 

[Boho]

Again, you aren't reading or understanding the information on that page. It very clearly addresses the exact point you are making. I'm done with this thread.

I understand, you're right about it comparing same asset types. Whether any index funds are included isn't clear, but I see your point about lower cost funds. I'll study that page more.

 

[Boho]

Here's another one which hopefully is available:

OK, I set something up using the default settings.

Beat Boho

I'm not sure how seriously I'll be taking this, but this is actually something I was expecting to find sooner than this. I thought there would be a section on this forum where people would be making predictions and trying to beat each other.

 

[Gumby]

I thought there would be a section on this forum where people would be making predictions and trying to beat each other.

Why? I need only to make enough to satisfy my own spending requirements. Whether that performance is better or worse than someone else is irrelevant. I'd guess that most people on this board feel the same.

 

[easysurfer]

OK, I set something up using the default settings.

Beat Boho

I'm not sure how seriously I'll be taking this, but this is actually something I was expecting to find sooner than this. I thought there would be a section on this forum where people would be making predictions and trying to beat each other.

Not each other, I was thinking more of you showing off your investing skills at beating an index over time. Someone can pick a total stock or sp 500 index and you have at it doing your "magic" as you've been saying to us for several weeks or so.

I'd think you'd need more than a month as the start/stop times. More like minimum a year, maybe three to show you can consistently outperform the index. Otherwise, blind luck comes too much in play.

How about setting a contest for at east a year's time?

Not sure how serious you are taking this ... do I sense a double down?

 

[Boho]

Not each other, I was thinking more of you showing off your investing skills at beating an index over time.

I wouldn't even claim that I can beat the index, I just suspect I could and I'll try it. If I do stocks the timing would be off compared to my real life trading and that could matter in a big way so maybe I'll just pick funds and let it sit for a year.

 

[easysurfer]

I wouldn't even claim that I can beat the index, I just suspect I could and I'll try it. If I do stocks the timing would be off compared to my real life trading and that could matter in a big way so maybe I'll just pick funds and let it sit for a year.

I thought you were telling us over the past weeks how you could outperform the market. Rock, paper, scissors and all.. No?

 

[Boho]

I thought you were telling us over the past weeks how you could outperform the market. Rock, paper, scissors and all.. No?

I didn't even post the rock paper scissors thing in this section. It was moved here. I think my abilities in that game help but that's all. But I do think an index isn't so difficult to beat and that I could beat it.

 

[easysurfer]

I didn't even post the rock paper scissors thing in this section. It was moved here. I think my abilities in that game help but that's all. But I do think an index isn't so difficult to beat and that I could beat it.

The contest would be a good test for you to try. But I do say, have the contest duration for some time (at the very least a year). Most folks here aren't going anywhere.