Chris Dillow 

Why trading costs matter

Chris Dillow

Chris Dillow
Why trading costs matter

There’s a paradox about equity investing. On the one hand, academic economists claim to have found dozens of ways of beating the market (or anomalies) based upon things such as momentum, good corporate governance or countless accounting items such as accruals or Piotroski F-scores. On the other hand, fund managers do not beat the market on average. The FCA has found that they “did not outperform their own benchmarks after fees”, something which is also true in the US.

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