And the No. 1 Stock Fund Is… Miller Opportunity Trust wins with a 48.55% gain for 12 monthsThat sounds quite impressive, but when you look a little deeper, it turns out that it's a bit like the end of season Most Improved Player Award, which is easier to win the worse you were the previous season.
You're still a crap player, but it's much easier to improve from a low starting point than from one of excellence. You may be Most Improved, but calling yourself No. 1 Player would be a stretch.
Going back over the past ten years, July 2007 to July 2017, and the Miller Opportunity Trust fund is up a total of 9.37%, which is less than 1% per year - 0.09% to be precise.
Contrast that with the S&P 500 benchmark index which is up a total of 70.27% over the same period, an annualised rate of 5.47%.
The "contest" seems a little flawed, in my opinion, an opportunity for undeserved awards and a few drinks to be handed out. Note that Index Funds are not eligible.
The quarterly Winners’ Circle contest is designed to identify which U.S. stock fund with at least $50 million in assets and a record of more than three years posted the best performance in the trailing 12 months. Index funds and exchange-traded funds don’t qualify because they aren’t actively managed
Looks like an award for building a volatile portfolio, not one that will necessarily perform in the long run. Not a particularly meaningful award, apart from telling you which managers will give you the most exciting rollercoaster ride!
ReplyDeleteI wouldn't expect an index tracker to win this award even if eligible as they should track the market rather than massively out/underperform it. That's not to criticise index trackers; they have a different purpose.