Does Past Performance Matter? S&P Persistence Scorecard

The Rationales of Hedge Fund Regulation

“…The purpose of the MiFID II/MiFIR investor protection Q&As is to promote common supervisory approaches and practices in the application of MiFID II 38 It is true that past performance of funds are not trustable data of future results, but in spite of this, investors carefully scrutinize fund's past performance especially when investing their capital. Soe, A. M., & Poirier, R. (2018). Does past performance matter?…”

The usage of safe haven currencies in mitigating portfolio risk during market turmoil periods

“…Opponents of active portfolio management strategies quote studies that suggest active portfolio management strategies on aggregate being unable to outperform the passive ones (Fama, French, 2010) with as much as 80% of actively managed funds reportedly having underperformed the passive benchmarks over the last decade (Soe, 2016). However, there is a wide body of research, concluding that active portfolio management strategies can outperform passive alternative.…”

Equity Valuation: Science, Art, or Craft?

“…Another way of understanding how much value analysts and active management add is to look at persistence in performance. Soe and Poirier (2016) write that according to the S&P Persistence Scorecard for the United States, one of the key measurements of successful active management lies in the ability of a manager or a strategy to deliver above-average returns consistently over multiple periods. Demonstrating the ability to outperform peers repeatedly is the only proven way to differentiate a manager's luck from skill.…”