Active funds, more high-paid value destroyers
– James Saft is a Reuters columnist. The opinions expressed are his own –
While they have avoided the opprobrium heaped on bankers during the bear market, traditional active fund managers have quietly been proving that they too are often highly paid destroyers of value.
Active managers have few bushes left to hide behind, and the release of a new report from Standard & Poor’s uproots one of the few left: that somehow they provide protection during down markets, being able to go into cash and defensive stocks.
Your article reminds me of when the Congress eliminated the depletion allowance which meant that their investors were left with the movie studios; who Art Buchwald, after his successful lawsuit, would have told you are the world champions of creative accounting. At least, the oilmen would take you out for drink and a good steak and regale you of stories of in the Patch.