SB,
1. My posts in SI should never be interpreted as financial advice.
2. So, as managed money takes less risk, it earns lower return. Completely consistent with the academic position.
Now, let's considers three investors:
1. Managed money, less than 100% invested, achieving less than market return.
2. Index fund, 100% invested, achieving market return.
3. Managed money, more than 100% invested, achieving more than market return.
Most participants in this thread will consider the first and last option to be appropriate for a smart investor. However, they will never attempt to adjust the returns by risk. I always try to do that, but it is hard to do as money managers will never divulge that information. Most participants on this thread will be willing to money managers the benefit of doubt, however. ;-)
-BGR. |
