tag:blogger.com,1999:blog-7905515.post3462695374852012569..comments2024-03-14T11:09:32.759-05:00Comments on Falkenblog: Fund Managers Still Don't OutperformEric Falkensteinhttp://www.blogger.com/profile/07243687157322033496noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7905515.post-17308515077723570922009-04-07T11:23:00.000-05:002009-04-07T11:23:00.000-05:00The problem with grossman-stiglitz is that there s...The problem with grossman-stiglitz is that there should be informed guys making higher than average returns on the information they 'buy'. Other than insider trading, no one has identified such informed traders. One would think professional investors are paying hte price, so that the net returns to investors should equal the return to investing in indices. That does not happen.Eric Falkensteinhttps://www.blogger.com/profile/07243687157322033496noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-55458914544690444272009-04-07T07:49:00.000-05:002009-04-07T07:49:00.000-05:00What about the Grossman-Stiglitz Paradox? Perhaps ...What about the Grossman-Stiglitz Paradox? Perhaps Stiglitz is an idiot, but Grossman may have been on the right track. We need both active and passive managers, it seems. After all, if we all went to passive management, an active manager *could* achieve superior returns, at least in the short-term. That might start people to move back to active management, keeping them in some sort of dynamic tension.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-87393156626025499242009-04-01T20:14:00.000-05:002009-04-01T20:14:00.000-05:00I think passive funds will slowly grow relative to...I think passive funds will slowly grow relative to active ones and eventually overtake them - and only then will there be a small advantage to active funds, which in equilibrium will be balanced out by the higher fees in active funds. <BR/><BR/>Most of my $ is in index ETFs, but I sometimes worry about how these funds (don't) vote my shares.Anonymousnoreply@blogger.com