Fund investors often debate: Should I entrust my money to an experienced fund manager with a record over many different market cycles, or should I go with an upstart manager who might have fresh ideas on how to generate gains?
My research suggests that if you want a fund that will track an index better and provide superior posttax returns, the more-seasoned fund manager is likely your best bet. If, on the other hand, you are looking for outsize bets and potential home runs, a short-tenure manager may be the way to go.