Stock pickers continue to underperform, both in the short and long term. 79% of managers fell short of their benchmarks last year, and of the funds that have been around for over 10 years, this number climbs to 86%. Even when accounting for risk adjusted returns, most fund managers underperform.
There are a few clear reasons why this occurs. Whether you are choosing an active manager or investing on your own behalf, there are a several key items you should be watching out for to avoid underperforming.
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