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Gunnar Miller's avatar

Re: "Yet, this research points to a simple investment strategy for fund selectors. Look at funds that underperformed in years six to ten before today. These are the funds that tend to follow styles that are likely to come back into favour in the next five years. And that may have a better chance of outperforming going forward than the funds that did well in the last five years or so.", it would be interesting to take the analysis a step further and see whether it's not only styles coming back (i.e. value funds finally having a period of outperformance), but also because those funds are highly likely have had their managers replaced.

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Gabor's avatar

It would be interesting to see this chart with a horizon of 1 year - I suspect the same pattern will emerge.

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