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Are bond fund managers smarter than equity fund managers? | MoneyWeek

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By: Dr Matthew Partridge 7-9 minutes Bond indices are harder to track than equity indices Every day, MoneyWeek's executive editor John Stepek and guest contributors explain how current economic and political developments are affecting the markets and your wealth, and give you pointers on how you can profit. Sign up free here . By now, most investors know that active fund managers struggle to beat the market. That’s the main reason for the surge in popularity of cheap “passive” funds (those which aim to track the market using mechanical methods, rather than beat it using expensive managers). However, while this is true of funds that invest in equities, it’s not the case for every active fund. If you’re investing in a bond fund, it seems, the choice is far less clear cut. Why do bond fund managers beat their benchmarks? Looking for Easy Games in Bonds , a new paper from Michael Mauboussin of Blue Mountain Inves