In the short - run, there is a high probability we will
underperform standard benchmarks and / or lose money: Why would cloning make sense in that context?
Not exact matches
The above historical performance figures from Morningstar indicate that the fund had a higher volatility (expressed as a
standard deviation of returns) and
underperformed the S&P 500 ® index, its best - fit
benchmark, on a risk - adjusted basis (Sharpe Ratio) in both the three - and five - year trailing periods.
The
Standard & Poor's Indices Versus Active Funds Scorecard for the six months ended June 30 also showed most active fixed - income funds
underperforming their
benchmarks, though managers of short - dated government debt did manage to best their indexes in each of the one -, three - and five - year sampling periods.