That year Paulson made $15B for investors on a $1B capital base. Those peak Ackman years when he blew up, etc. Not sustainable over a long period of time, but all you need is a grand slam and you're pretty fucking happy

Active mutual funds should die

Anything hedged / running less than 100% net you should be comparing risk adjusted returns

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35646330)

*someone else on xo came up with that phrase or referenced an article that did

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35646472)

guy who's successfully chosen active funds here sup

btw fidelity funds are usually garbage. they let their hot funds get way way way too big. you should expect a fidelity fund with a good long term track record to start fading as they tend to become closet indexers. as a general rule you should avoid any actively managed fund that advertises. that includes fidelity, t rowe price, american funds, etc.

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35648334)

you should be very careful in sourcing ideas from the primecap funds.

1) primecap's outperformance is driven by a handful of massive winners, particularly in biotech. james marchetti was promoted to a pm a few years ago and he's behind them. more recently poagx and pogrx made a ton of money on nektar therapeutics.

2) primecap funds are allocated and managed as independent sleeves by the pms and senior analysts. you have no idea whose picks you're following.

3) just own the primecap funds bro. it's a lot easier.

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35648469)

you should not pick stocks unless you are doing it for fun OR you have really, really strong reasons to believe you can beat the market. you're basically asking if you should invest 50% of your money in one of the best actively managed stock funds and 50% in a de facto fund run by some guy who picks stocks part time for fun. you're better off just going 100% pogrx (but i wouldn't recommend that).

something like 50% pogrx, 50% schd is a reasonably diversified, low cost strategy for a us equity allocation. you can run a fun-money stock selection sleeve on the side and see how your performance stacks up over 3-5 years. if your returns are good, you can size up your personal stock selection sleeve.

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35648569)

everyone knows MUTUAL funds are complete scams, they basically track the market as they can't put more than 2% into any idea, thus they own hundreds of stocks which is the same as owning the market.

add in the 5% load and 1-3% fees and of course they underperform. They get 0 carry and have no incentive to win either, they just want to get paid the fee.

gov't is at fault since tax-free 401k's make it so these fail funds have to exist. still worth it if u get to save on taxes and ur firm matches 100% of the first 6%. just make sure to convert to IRA and buy your own ETFs later.

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35648340)

most 401ks at major companies have a wide variety of index fund options.

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35648347)

Two identical companies, one on an index, one not, the one on an index has a materially higher valuation. On the order of 10-15%.

What percentage is the cost differential?

(http://www.autoadmit.com/thread.php?thread_id=3923785&forum_id=2#35648349)