For the last few years, most MF/PMS fund managers (including us) have easily managed to outperform index due to the skewed nature of the market rally (small companies beating large). We had written about it in our Q1 FY18 update - 2point2capital.com/Investor-Updat….
This was largely luck.
This was largely luck.
Things have markedly changed over the last month with large companies beating small. Now all fund managers are underperforming. See Capitalmind's Magic Portfolio (docs.google.com/spreadsheets/d…) to see how random portfolio is underperforming Nifty by ~10% in just the last month!
As markets normalize, role of skill will again start dominating that of luck. Only then will we truly see the difference between good and bad fund managers.
