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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (21475)	6/17/2005 6:22:28 AM
From: Dave	Respond to of 78958

Hey Paul, Re: Bill Miller I believe that Mr. Miller has "outperformed" the S&P 500 (net of fees) for 14 years straight. RE: Does "active" Management add value? Yes, you are absolutely correct, that a passive index such as the S&P 500 beats actively managed funds the majority of the time. However, one must exclude "sector" funds, since those managers have to invest in a particular sector -- e.g. can you imagine a "gold" fund several years ago? One of the key reasons why the S&P outperforms active management is turnover. It has been proven time and time again that high turnover equates to low returns (on average, of course). Regards.