| 02/23/2009 | Mark Kritzman featured in The New York Times |
The New York Times article, “Index Funds Win Again,” discusses Kritzman’s recent study on active versus passive investing. The study measures the long-term impact of the expenses associated with investing in active mutual funds and hedge funds. Kritzman concludes that, to break even, an actively managed mutual fund has to outperform an index fund by 4.3 percentage points per year, and a hedge fund has to outperform an index fund by 10.0 percentage points per year on a pre-expense basis. Given the results, it is difficult to justify active management for taxable investors.
To read the full article, please click here.