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The message from both studies is clear: hedge funds, on average, don't outperform the stock market.
But money managers aren't cheap, and the majority of managed funds don't outperform the market.
Charters weed out students with lower test scores and expel more students, yet still don't outperform their local public school.
Yet a stream of research has shown that, on average, charter schools don't outperform traditional public schools.
"The one percent to two percent portfolio manager fee is unwarranted, especially when portfolio managers don't outperform the market consistently and don't provide smaller clients with the right amount of attention".
And it's not just happening in California, the first state with a charter-school association to recommend the closure of its own lackluster members after a steady trickle of research has shown that, on average, charter schools don't outperform traditional public schools.
Similar(52)
Although the passively managed indexed funds are often cheaper, by their nature they do not outperform the market.
But, oddly, mutual funds made up of value stocks do not outperform those made up of growth stocks.
Studies show that mutual funds that have outperformed their peers in the past generally do not outperform them in the future.
Although they tend to decline less than traditional balanced funds during market downturns, they generally do not outperform the market in good times.
Mutual fund managers, as a class, lose their clients' money because they do not outperform the market and charge fees for their mediocrity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com