Compare the down sides of the emerging and established managers' performance
Updated: Jan 13, 2020
Although past performance is no guarantee of future results, but track records always play an important role in manager selection. The reason is that it is the evidence of survival and the ability to manage the asset.
Analysis found that 22% of emerging manager funds made a loss in their first year of trading. This compares favorably with the 26% of established manager funds that incurred a loss and suggests that investors are no more likely to lose money by investing with first-time fund managers than they are by investing with firms that can demonstrate track records.
In another words, emerging managers as a whole also beat the established ones. Investors who invest in emerging funds will be less likely to lose their fund comparing with investing in established ones.
Together with previous post, we can conclude that analysis
shows investors who invest in emerging managers are not only having better chance to win but also having less chance to lose.
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