, Columnist
Persistence Does Pay, It Just Doesn't Happen Much
Why are active managers finding it so difficult to keep performing well year after year? Plus, Covid conundrum, muzzled retirees and more.
Disciplined managers should be able to prove their worth, but recent performance can’t guarantee long-term viability.
Photographer: Stanislaw Pytel/Stone RF via Getty Images
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Marketing for mutual funds always carries the disclaimer that past performance is no guarantee of future returns. And of course it isn’t. But the degree to which past performance fails to persist over time goes far beyond the ups and downs of the market, and remains one of the biggest arguments against active management.