mikeyjones 88 Posted June 19, 2017 Not really. I mean technically that is what it challenges, but the premise is that fund managers aren't worth it. HEdge funds have, in theory, the best managers. To eliminate jackpot luck for one, or a truly exceptional manager amongst a group of supposedly exceptional managers, he groups them together. Disagree. The bet is very specific to a portfolio of funds of funds for a reason. Most fund managers can at least meet indexes but the fees chip away at those returns. Hence when you put active management fees on top of active management fees or fees^2, your returns are worse than the underlying indexes. Only the best mangers of funds of funds will be able to outperform. So if you aggregate those as a portfolio, you will do worse than passive management. The real issue is that those funds of funds are kind of necessary as feeder funds. HFs are relationship businesses so the average joe can't just get in there - even if you meet qualifications per the SEC. Sent from my iPhone using Tapatalk Quote Share this post Link to post Share on other sites
SW9racer 262 Posted June 21, 2017 Thoughts on a good passive balance for 15 years out? Quote Share this post Link to post Share on other sites
mikeyjones 88 Posted June 21, 2017 1 hour ago, SW9racer said: Thoughts on a good passive balance for 15 years out? What's your risk profile? Can you tolerate volatility in your portfolio? Do you have any other sources of income in retirement besides this money? Asking rhetorically. If you can tolerate risk and have a back up plan, be more aggressive. If not, most FA's would probably suggest a 70/30 approach and start scaling that back to be more fixed income vs equity. Quote Share this post Link to post Share on other sites
SW9racer 262 Posted June 21, 2017 For fixed income, are those the bond funds? And for the equity funds, should I select several of the industries? I am thinking I can manage the balance myself with the various mutual funds, rather than pay double for a manager and the fund fees. Quote Share this post Link to post Share on other sites