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More than 80 % of the money managed in the USA belong to pension funds,
mutual funds & bank trust funds. The managers are judged on how they do
against their respective index and their Alpha.
The pension funds (ie. NY City, GM IMC, IBM pension fund etc) also play a
game of musical chairs by dropping the managers who do not show a good return
in a three year period with a low alpha. Ultimately the managers make money by
the fees they charge.
If you are a state, county or a employee in a private sector, chances are
your 401 k, ira is managed by these managers. Most of the pension funds use
fundamental analysis, They might have one tech. analysts for every 100
fundamental analysts. Doesnt matter who is better.... the point is who is
given the money to manage.
Thats why T Rowe price, Kancas City Southern are good cash cows.
If a growth funds shows
Return Index
Fund A -17 % -20%
Fund C -25 % -20%
Then Fund A is doing very good.
>
> His funds' year to date performances are as follows:
>
> OSCVX -4.85%
> OSCGX -28.66%
> OSAGX -24.18%
> OSDGX -3.00%
>
>
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