Discussion

This was an interesting article and provided some helpful insight on the analysis of funds. The idea of performing and attribution analysis was new to me. It seems like it is important to look at many factors when analyzing a fund. If you look at only from at top down approach you could come to a conclusion that a manager is making poor decisions by investing in the wrong sectors even if the stocks selected were thought through with a bottom up approach. Similarly, if you look from only a bottom up approach you could overlook a fund manager's expertise in a certain sector. Investors should consider the perspective of the fund manager when making investment decisions. An attribution analysis could be a helpful way to do this.