SS 17 investment, following, national, someone, market

cfalevel2011

Qu 11 Reading 47 ask the following: If international investment managers as a group, beat some national market index what does it tell us about the performance of local investment managers?

Ans: If international investors as a group beat some national index it tells us that that local investors as a group probably underperformed the index.


Could someone explain the rationale behind the answer. Essentially I was wondering why it is that the good perfromance does not extend to local investment manager?

mar350

This is the kind of simple commonsense checks that my manager does all the time. You present strategy results , and he will ask you to slice and dice it until he discovers a flaw or data or calculation error .based on counts , averages , excess returns etc.