Investment managers who swing for the fences might get investor attention. But they often strike out.
Such managers attract investors, but a new study shows they do not deliver superior performance.
The higher expense ratio of private investments shouldn't dissuade investors.
Most stocks have reduced rather than increased shareholder wealth.
While a large equity risk premium has been available to investors, a large majority of stocks have had negative risk premiums.
Increasing diversification reduces portfolio volatility and usually increases portfolio returns.
As evidenced by S&P's SPIVA reports, actively managed equity mutual funds persistently underperform.
Investors are better served by directly targeting factor exposures in their portfolio rather than using a dividend screen.