TY - JOUR T1 - Luck, Skill, and Investment Performance JF - The Journal of Portfolio Management SP - 131 LP - 134 DO - 10.3905/JPM.2009.35.2.131 VL - 35 IS - 2 AU - Bradford Cornell Y1 - 2009/01/31 UR - https://pm-research.com/content/35/2/131.abstract N2 - This article presents a simple procedure for assessing the relative impact of luck and skill in determining investment performance. The procedure is then applied to the large-cap value managers. The results are consistent with earlier work that suggests that the great majority of the cross-sectional variation in fund performance is due to random noise.TOPICS: Portfolio construction, statistical methods, mutual fund performance ER -