Active Managers Are Skilled: On Average, They Add More Than $3 Million Per Year

Title:

Active Managers Are Skilled: On Average, They Add More Than $3 Million Per Year

GSB Authors:

Jonathan Berk

All Authors:

Berk, Jonathan B.

van Binsbergen, J. H.

Date:

2016-01-01

Abstract:

The article emphasizes that the correct measures of managerial skills of portfolio managers are important for impressive rate of return on investments. It mentions that superior managerial performance of the average mutual fund manager has added three million dollars per year in the U.S. It explains how the average value added is zero when the managers are unskilled.

Publication:

The Journal of Portfolio Management

Volume:

42

Issue:

2

Page Range:

131-139

Collection:

Faculty Publications

Keywords:

investment advisors

portfolio management (Investments)

portfolio managers (Investments)

investors

investment officers

DOI:

https://doi.org/10.3905/jpm.2016.42.2.131

Publication Type:

Articles