Strategy labeling is very effective at clustering funds pursuing the same strategy and at identifying skilled active managers within these strategies. On the contrary, Style Box labeling is very ineffective since it spreads common strategies across clusters rather than concentrating … Continue reading
Not everyone’s a fan. Fund managers complain that Morningstar’s version of investing style has become so powerful that it constrains stock picking and inhibits performance. “It’s a bad system with unintended consequences,” says Craig Callahan, president and founder of Icon … Continue reading
If you want to consistently maximize your investment potential, let your experts take off the shackles. It’s time to recognize that style boxes are not an asset class. Link to Article
LAS VEGAS – When picking fund managers, RIAs should start thinking outside the style box. Fund managers that stray from their Lipper or Morningstar classifications tend to perform better than those who strictly adhere to it. Download Article
The Morningstar style box methodology, which has dominated the mutual fund industry since its introduction in 1992, is about to be challenged by a new commercial venture. AthenaInvest is the brainchild of Tom Howard, a professor of finance at the … Continue reading