Here we go again.

Previously academics delving into the alchemical secrets of portfolio management suggested that younger funds outperform older funds do.

Now Morningstar columnist John Rekenthaler looks a study from Saurin Petel of University of Western Ontario and Sergei Sarkissian of McGill University indicating that "US stock funds with multiple managers outperform those with a single manager."

Apparently, funds with larger teams benefit from economies of scale and can chase more returns.

Meanwhile, Morningstar analyst Bridget Hughes and Laura Pavlenko Lutton thinks "good stewards have produced better funds," according to a Morningstar survey.

Based on Hughes and Lutton's analysis, a good stewardship represents the fund firms who have the "highest levels of manager tenure, manager retention and the ownership of mutual fund shares."

So apparently the current investment research wisdom is this: if you happen to be old, didn't do a good job on your SATs before you going college, don't have a larger fund family to back you up, maybe you should change careers.

…Thank goodness we got that all cleared up. 

Edited by: Amy Xie


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