Terry Smith's Fundsmith beat the market for a decade, then trailed four straight years. £3.31bn fled in 2024. Most investors lost money vs a tracker. Why? Timing. They bought high after stellar returns, sold low during underperformance. Jack Bogle's iron law: money arrives after gains, leaves during losses. Even star managers can't beat that.
Is private equity worth it? New research shows PE's 3.8% annual edge over public markets is far smaller than the industry claims, has been shrinking since 2006, and partly disappears once you adjust for leverage, size, and sector exposure. With all-in fees reaching 6% per year, retail investors should ask why the velvet rope is coming down just as institutional outperformance has faded. The answer: the industry needs your money.
Robin Powell
6 hours ago8 min read
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