Step 6: Style Drifters “Style drift is a serious problem [for investors] because it distorts asset allocation and undermines performance when styles rotate. Value managers who have drifted over the past three years [1998-2000] toward more favored growth stocks are regretting those moves, but not as much as their [investors].” – Ron Surz, President, PPCA Inc. “Get the Drift,” 2001
“One thing is clear. Style drift happens to a sizable percentage of mutual funds.. For [investors or] planners seeking to create portfolios tapping into consistently different equity styles, style drift presents a significant concern.” – Craig L. Israelsen, Ph.D., “Drift Happens,” Financial Planning Interactive, 1999
“The SEC deems it a fraud if performance results are compared to an inappropriate index, without disclosing the material differences between the index and the accounts under management.” – Robert J. Zutz, “Compliance Review,” Schwab Institutional, Vol 10, Issue 8, August, 2001
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...