Hello Ron,

What an excellent explanation...thank you for pointing out the problems. It is usually the case that when you peel back the layers of the onion that your eyes begin to water when looking at analytical methodologies. I myself, when a fund manager, went through much handholding with Morningstar to ensure that they continued to classify us in our preferred category. Much of their schema was based on analytical methodologies, rather than on listening to the manager discuss his or her strategy, and then state upfront the preferred benchmark.

Separately, I wonder how much underperformance occurs simply of shifting classifications and hence managers having an exogenous source of 'style drift,' 'tracking error,' and other such measures?

Again, thanks!

Jason