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The Terry Smith timing trap: why most investors lost money

Terry Smith's Fundsmith beat the market for a decade, then trailed four straight years. £3.31bn fled in 2024. Most investors lost money vs a tracker. Why? Timing. They bought high after stellar returns, sold low during underperformance. Jack Bogle's iron law: money arrives after gains, leaves during losses. Even star managers can't beat that.

Robin Powell

A middle-aged couple in a rain-soaked park, huddled under an umbrella but visibly wet despite it — their damp jackets and resigned expressions illustrating how active funds in downturns offer less protection than promised.

Do active funds in downturns really protect you? What 26 years of data reveals

Active fund managers claim they earn their fees when markets fall. New Morningstar research spanning 26 years tests this claim. The findings: active funds in downturns do outperform more often, but markets rise 80% of the time, swamping any advantage. When COVID and 2022 stress-tested the theory, most active managers failed to protect investors. The promised shelter turns out to be little more than a coin flip.

Robin Powell

Nov 107 min read

Fidelity International website homepage promoting pension consolidation services, illustrating how Fidelity's active funds are marketed to UK retail investors seeking retirement solutions

Fidelity's active funds: how good are they really?

Fidelity's active funds built their reputation on Peter Lynch's legendary returns. But 30 years of data reveals zero funds with statistically significant outperformance. Most telling? Fidelity's own $723 billion bet on zero-fee index funds—bigger than its flagship active fund. When Peter Lynch's company stops backing Peter Lynch's strategy, the evidence speaks louder than marketing.

Robin Powell

Oct 259 min read