October 29, 2012
Even when a large swath of Europe was tumbling into recession, China was slowing and the U.S. was marching ever closer to the edge of a growth-crushing fiscal cliff, equity investors took heart from the fact plenty of big corporations were still figuring out ways to goose profits, boost market share and beat estimates. But tougher times are inevitably taking a toll.
The study examined a broad universe of funds. “We didn’t say that there might not be some manager who could consistently add value,” says Mr. Evensky, a 35-year industry veteran who also teaches a graduate investment class at Texas Tech University. “But it certainly suggests they would be awfully hard to find, and you probably wouldn’t know it for a decade [of performance].”