Latin America is Hot - Don't get Burned


5/9/2017 2:38:15 AM // Written by Phil Stockton

Latin America is Hot - Don't get Burned

The SPIVA Latin America Year-End 2016 Results are out. The report does not make great reading for investors who allocate to Latin America via Active funds. 

The SPIVA report makes this damning statement:

"the majority of active fund managers in Latin American markets were unable to outperform their respective benchmarks for all categories measured—one-, three-, and five-year periods."

The report goes on to state that:

"For all categories, the majority of managers underperformed their benchmark for a five-year time horizon, regardless of the report end date.  “Consistent under performance” is a suitable characterization."

Active managers can and do out perform. Yet in aggregate they fail; finding that small number of managers in advance that go on to outperform down to luck not science. 

Evidence-Based Investing makes a lot of sense, you are dealing with statistical probabilities and basic arithmetic rather than predictions. If want to know more about Evidence-Based investing as an alternative to conventional Active please contact us

You can read the full report here

 
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