Most investors either ignore emerging markets or hand their money to active managers who underperform. Academic research points to a better approach: factor investing in emerging markets, targeting the company characteristics that have persistently driven higher returns.
Sunday Times columnist Ian Cowie's Apple ten-bagger makes a great story, but is it evidence that stock picking works? His own readers want benchmark comparisons — and the data is firmly on their side.
The so-called stock-picker’s market is a myth that fund managers use to justify their fees, whatever the market does. Decades of data show that even when conditions should favour active managers, most still underperform. The evidence is clear: simplicity, not stock-picking, wins in the long run.
Robin Powell
Oct 23, 20259 min read
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