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Fund managers aren't bad at picking stocks, but they're terrible at this

Fund managers consistently fail at market timing despite claiming expertise, reveals the largest global study of mutual fund performance. While stock picking skills vary by country, timing abilities are universally poor across 21,000 funds in 35 nations. New research challenges industry claims about professional investment skills and fee justification.

TEBI

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Is alpha worth it? Even ‘winning’ funds add little

A new study shows alpha’s value is tiny. Even rare “winning” active funds add just basis points, often less than fees. Here’s why indexing wins.

Robin Powell

7 days ago6 min read

Cartoon showing a carnival barker in striped jacket and boater hat standing beside a complex 'Buffer Fund Protection Game' booth with spinning wheel marked with percentages (9%, 10%, 15%). The barker tells a confused investor holding a phone: 'Our sophisticated strategy works perfectly... when Jupiter aligns with Mars on the third Wednesday in the month.' In the background, disappointed previous customers walk away from a carnival tent labeled 'Downside Protection' while the rules board shows fine print.

The buffer fund mirage: why simple beats complex for downside protection

New research reveals buffer fund marketing promises don't match reality. AQR Capital Management's comprehensive study of 401 buffer funds shows these complex products consistently underperform simple stock-cash combinations whilst failing to deliver reliable downside protection. The median buffer fund charges 0.79% annually but trails reference assets by 0.07 in risk-adjusted returns, with performance worsening over time.

Robin Powell

Sep 49 min read

Abstract representation of market volatility: dramatic geyser eruption with golden steam shooting into starlit sky, symbolising the unpredictable and explosive nature of financial market turbulence that active fund managers struggle to navigate

Do active funds beat the market during volatility? 2025's evidence suggests not

The relationship between active funds and volatility has long been debated, with fund managers claiming turbulent markets play to their strengths. 2025's Trump-driven chaos provided the perfect test case – yet 71% of active equity managers still underperformed passive benchmarks. Despite currency swings, sectoral rotations, and policy uncertainty, the 29% success rate barely budged from 2024's 28.8%. Academic evidence spanning 25 years confirms: volatility doesn't save active

TEBI

Aug 712 min read

The £5.9 million fine for Neil Woodford is a drop in the ocean

Woodford's £5.9 million fine is a drop in the ocean

After six years, Neil Woodford faces a £5.9m fine - barely 4% of the £160m+ in fees he extracted from investors. With thousands losing their life savings in the fund collapse, this penalty is truly a drop in the ocean compared to the wealth destruction caused and personal enrichment gained.

TEBI

Aug 55 min read

Fund manager looking stressed while reviewing declining market performance on computer screen, with red downward trending chart visible on monitor behind him

Fund managers aren't bad at picking stocks, but they're terrible at this

Fund managers consistently fail at market timing despite claiming expertise, reveals the largest global study of mutual fund performance. While stock picking skills vary by country, timing abilities are universally poor across 21,000 funds in 35 nations. New research challenges industry claims about professional investment skills and fee justification.

TEBI

Aug 44 min read