Selecting Brokers: Sniping and Hunting Selecting Stocks During Recessions

Selecting Mutual Fund Managers

Before selecting a investment manager or mutual fund, the manager or mutual fund track record should be analyzed from it's inception. While a minimum of five years of data should be reviewed (any less is probably meaningless) ten years or more is preferable. A major problem with most track records is that statisticians suggest between 30 and 140 years of data may be required to sufficiently document manager "skill." This is obviously a huge challenge. Few managers have the minimum statistically useful 30 years. Just 20 of 4,874 (or .41%) of equity funds have a manager with greater than 30 years of documented track record and those with 30 years of experience are probably nearing retirement.