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

Click here to receive free and immediate email alerts of the latest forecasts.