Dumb Individual Investors and Smart Companies?
May 11, 2005 - Buybacks-Secondaries, Mutual/Hedge Funds
…mutual funds may function mostly as passive vehicles through which active individual investors (reallocators) voluntarily transfer wealth to public corporations. By doing the opposite of these individuals, one can construct a portfolio with high returns. By ceasing reallocations, mutual fund investors in aggregate could boost their Sharpe ratio by 9%.