Celebrities among fund managers are becoming rare. Fund management gurus built their success over the long term as did Warren Buffett, an example to almost all fund managers.
With the younger generation, fund management celebrities have lost in popularity and appear less in the media. There are multiple reasons why these gurus do not resonate with this generation:
1. The increase of passive management
“Fund management celebrities used to engender confidence in investors who were willing to pay high commissions for their performance, but today, with the emergence of new passive investment vehicles, the experts recognise that it became difficult for a manager to beat the market, "said Juan Manuel Viver, policy officer at BETTER FINANCE.
"The performance of an index like the S & P 500 has become difficult to beat for fund managers over the long term. The investor is faced with a choice. Why pay more for a fund when I can buy a tracker which allows me to exceed the average performance of fund managers at a cheaper cost“ added Viver.
Please read the full article in French here.