If I pick A Winning Manager, Aren’t I Likely To Beat The Market?

Recently in New Zealand a few star managers have had brilliant runs easily outperforming markets since inception. Why on earth would an investor not want to use these funds for their New Zealand share allocation? We have a lot of respect for what star performers have done. It’s not easy to produce exceptional performance. But for all their glory, the websites of the star performers provide us with the answer to the question… “Past performance is no guarantee of future returns.” When asked a question about a star investment manager we typically respond with a question of our own that goes something like this, “Would you believe that this is a very well-studied issue?”