Massachusetts State Pension Dumps Stock Pickers

“We’ve determined that active managers add no value over long periods of time,” Michael Travaglini, director of the Massachusetts Pension Reserve, said in an interview. (Bloomberg News)

Active portfolio management took a hit today with the announcement that the Massachusetts Pension Reserve is pulling $2 billion out of Legg Mason.

“This is not a temporary move,” Travaglini said. “We’ve reviewed 24 years of history. The domestic equity structure is not working.”

If active management isn’t working for a large pension fund, why would it work any better for you with a much smaller margin for error?

 
 
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  1. Another One Bites The Dust — Thornton Wealth Management on August 13th, 2008 at 12:34 pm:
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