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Experience Matters Among Mutual Fund Managers

Chet Currier, Bloomberg News, goes into more depth on the "New S&P Scorecard on Consistency of Mutual Fund Performance," reported here last week. In this article published in the International Herald Tribune, he points out that experience matters. Currier said that "Very few funds manage to maintain a consistent top quartile ranking for long periods of time," [according to the] news release reporting the research. Yet where signs of that sort of thing did show up, said Rosanne Pane, an S&P funds strategist, "consistent top performers all had experienced management teams with tenure higher than their peers." He also reports "S&P said it had found two other characteristics of consistent performers among funds: They had lower- than-average expenses, and their managers did a better-than-average job of limiting losses in the bear market."