Salient to Investors:
- Hedge fund stars and private equity CEOs get huge headlines, but few mutual fund managers of the sort that average Americans can invest with do.
- Neil Pardasani at Boston Consulting said advisers like to invest in fund brands that their clients know.
- Investors often stick with star managers even when their performance is weak.
- Sanford Bernstein estimates up to 30% of Pimco’s assets could leave following Gross’s exit.
- The biggest firms mostly do without big fund manager stars, which helps put the emphasis where it belongs, on performance.
- Klaas Baks at Emory University said investors know that a few years of big gains are as likely to be a fluke as a sign of genius.
- BCG says passive investments’ share of all assets has doubled since 2003, while the share in traditional active assets fell 29%.
- Investors are getting better at telling substance from celebrity.
Read the full article at http://www.bloomberg.com/news/2014-09-26/bill-gross-and-the-dying-breed-of-mutual-fund-superstars.html
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