A source of strength is that the firm has been skilled at retaining portfolio management talent, providing continuity for strategies, as proven by low turnover over the past five years compared with others in the industry. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the second most-expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. Sound Mind strategies have failed to have lengthy success. In particular, the firm's three-year risk-adjusted success ratio demonstrates that only 0% have both survived and beaten their respective category median on a risk-adjusted basis. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development.
Daniel Kahneman: The Unlikely Economist
How an outsider won a Nobel Prize.