"The problem isn't in the lack of talent floating around, it is in the lack of talent-spotting talent (think of Julian Robertson or John Templeton), which is a very different skill to stock-picking talent or FUM-raising talent."
I think this problem is everywhere. How does an investor (from institutional to individual investors) find talented fund managers? How does a fund management find and retain talented analysts? Can talented fund managers and analysts change and become "untalented"?
My sense is most people just look at the statistic that most fund managers don't beat their index, and decide they might as well go index. I'm not convinced that is the right answer either.
FOR Price at posting:
$1.29 Sentiment: None Disclosure: Not Held
