Morningstar of Chicago announced the results of a study that shows experienced mutual fund managers have fared better during the recent bear market than their less experienced counterparts.
The study, which covers the period from the end of March 2000 to the end of March 2001, looks at the performance of funds with at least $100 million in assets. During the period, the Nasdaq fell nearly 60 percent, the S&P 500 dropped almost 22 percent, and most domestic stock funds lost money, according to Morningstar. The study shows, however, that funds with management teams that had tenures of four or more years lost less money, on average, than the typical domestic stock fund. The more experienced the managers, the less funds lost relative to the S&P 500 and the typical domestic stock fund.