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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (11626)	9/17/2003 4:59:47 PM
From: Kirk ©	Read Replies (1) \| Respond to of 95888

What most fund managers tend to care about is trying to distinguish themselves by slightly outperforming their particular benchmark and their peer group, and the effort to do so often involves cute little techniques like adjusting relative weightings of small caps vs large caps at various points in the business cycle. They don't want to take too many chances by differing too markedly from the benchmark, because too many standard deviations underperformance for even one or two quarters and they might find themselves looking for another job so most tend to be "closet indexers" even though they are active managers. true. If you look at the numbers, $100K invested in a fund might be $80K indexed and $20K where the manager tries to beat the index. For this you usually pay over 1% of the total or about 5% on the $20K you are getting actively managed! What I have decided to recommend is you put some money into index funds (perhaps 80%) then manage yourself the 20% that you normally turn over to the fund managers.