Cumulative Fundamental Return of Average Active Managers and Style Indices

Abstract

This study answers to a question whether average active manager can, in a long run, outperform equity market and style indices in terms of cumulative fundamental return. Results show that average manager earns similar or lower cumulative fundamental return than the market or corresponding style index in a long run. Initially, this paper was made for advisory purposes only because of which it may not meet the quality criteria of a research paper.