In this article Dan raises questions about the underlying drivers of both outperformance and underperformance. If it were a pure matter of manager skill, fund manager performance would be more persistent. Innova’s research shows that a manager’s returns are not just driven by the skill they use to select specific stocks, but rather the broader factors that govern how they invest such style, size, quality, momentum, or volatility. These factors represent their underlying broad and persistent drivers of returns.

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