They are only good when the markets are going up and can be poor when the markets are trending down. Lets face it, there are times when a bum can pick a portfolio that will give strong returns when the markets are going up. Its a shame companies like Goldman Sachs, Merril Lynch and others won't be generous to pay him a $4 million bonus. I have always thought trading and investment management was one job where the value of education is exaggerated becaus etehre have been many many guys who have had spectaulr returns withouht having a degree from Oxford or Harvard in finance or maths. There are lots of chartists, for example, who do tremendously well. They don't need a degree from these places to study market behaviour.