Mutual Fund Managers Might Not Suck After All

Maybe mutual find managers aren't all complete lame-asses totally undeserving of your 401(k) money after all. That's the message of a soon-to-be-published study from two University of Maryland profs (who knew they even had a finance department?). Their point is that while very few mutual fund managers can outperform the market over the long haul, some of them are quite good at it during certain points of the economic cycle. And if you're willing to change managers every few months (and don't have negative tax implications or high switching costs), you can outperform the market by eight percentage points a year. Or at least that how their model portfolio did. The Manager's In a Slump [NY Times] Downloadable Copy of the Paper [SSRN]

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