JWR sets the bar....

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JWR sets the bar....

Postby Zdeerman » 03/30/09 at 14:19:39

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Rob Bennett is a vile and despicable liar.
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Re: JWR sets the bar....

Postby Zdeerman » 03/30/09 at 14:55:17

I'm not actually familiar with GMO funds myself and I doubt Russell invests given this constraint:

Please visit the Investor Information section of About GMO for more information if you do not meet our minimums ($10 million for mutual fund accounts).


but in any event, they have a ton of funds, but our good friends at M* help us make things simple and prevent cherry-picking by giving an aggregate performance chart:

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So the five year return is 1.49%

The beaten down S&P500, JWR's favorite whipping boy, even though most investors have a balanced portfolio of a mix of classes and selections? -4%.

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Now, call me crazy, but given the wild market gyrations we have just had, I am not convinced I would tot that up to superior thinking on the part of fund managers at GMO.... but heck, let's just assume it was.

That is a greater than 5% differential, in a bear market/crash. Congratulations! Active management must work, right? Just look at how in the last year, they are beating their fellow active fund managers! They must have found the Holy Grail! Lucky VII!!!!!!!

So, ?I wonder if JWR will put his pension money where his internet mouth is:

I have $1,000 to wager that $10,000 invested in S&P500 (not that I am some fan boy of a simple index) will beat GMO's amalgam of all funds, over the next five years.

Let's see if the pensioner takes me up on the offer; I'm ready to deposit my end of the wager with an escrow service tomorrow, if they can hold the bet for that long.

https://www.escrow.com/solutions/escrow/index.asp

:lol:


(note that I don't now, nor have I ever guaranteed that the S&P (or any investment) will beat any specific active fund; merely that the market as a whole generally beats 95% of active funds, and I am very happy taking those odds -- and yes, I stand a nonzero chance of losing, but I'll definitely take those odds versus anything the two cranks pushing Lucky VII can come up with!)
Rob Bennett is a vile and despicable liar.
Zdeerman
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Posts: 720
Joined: 03/03/09 at 13:29:06

Re: JWR sets the bar....

Postby ogrecat » 03/31/09 at 10:42:34

The consensus is that JWR does no investing at all.  He is a retired federal employee with a very good COLA pension.  
As a dog returneth to his vomit, so a fool returneth to his folly.
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