In my book, I use a chart from some older research of Amit Goyal and his colleagues that showed that pension funds choose to switch asset managers at exactly the wrong time. They pick asset managers with a great track record over the last one to three years and fire the ones with a poor track record. Yet, in the three years after switching the asset managers the hired managers underperform while the fired managers outperform.
Nothing new but still impressive
Nothing new but still impressive
Nothing new but still impressive
In my book, I use a chart from some older research of Amit Goyal and his colleagues that showed that pension funds choose to switch asset managers at exactly the wrong time. They pick asset managers with a great track record over the last one to three years and fire the ones with a poor track record. Yet, in the three years after switching the asset managers the hired managers underperform while the fired managers outperform.