Analyze the standard deviations or volatility measurements. Look at all active managers in this asset class, both those that stayed in business and those who did not. Check to make sure the manager did not style drift during the period in question. These comparisons require a high degree of understanding of each of the items listed above. To simplify your analysis, you may consider that the only way to end up with a different performance than the index is to own investments different than the index.
Lets take a closer look at why stock pickers lose on average.
Video clips on the failure of stock pickers. Past performance is not indicative of future performance. Your use of this site is acknowledgement that you have read and understood the full disclaimer . It is not to be used by other Investment Advisors.