It's a long time waiting for a strategy to come true, when it hasn't over such a long time frame.
Short term under performance happens to the best of funds, but when they start lagging over 1,3,5,7 and 10, I have serious concerns.
In saying that, the last 10 years have seen amazing growth in most indices. Anyone who just invested in the index would be very happy with their low cost investment.
Whether that plays out for both the immediate and distant future... I am not sure.
It will be very interesting to see what happens in a prolonged down market. Will active funds, which go long and short, finally outperform their passive peers? Most fund managers would say yes, of course.
However, the stats over the last 40 years tell a different story. For the most part, active funds have simply followed the index down as well. The SPIVA data makes you question everything.
I definitely agree Magellan is riding the wave of tech/growth stocks in the US. I get the feeling if there is any reversal they will be hit the hardest. Until such time however, they will remain the darling of the active funds market.
Going back to Platinum, I think there will be a continued net outflow of funds. I understand your assessment, but most investors simply can't justify paying a premium for below par performance.
PTM Price at posting:
$4.64 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)