Professor David Blake from Cass Business School in London has led one of the most detailed on-going studies of mutual fund performance in the world.
It’s called New Evidence on Mutual Fund Performance: A Comparison of Alternative Bootstrap Methods — and every investor should read it.
The research was based on a study of 561 UK equity funds between 1998 and 2008. But, according to Professor Blake, the findings are broadly consistent with those of similar studies on fund management in different countries and over different periods of time.
I asked him to summarise the most important findings of the Cass study and other studies like it, and these are the five main points he came up with: