%0 Journal Article %A Bradford Cornell %T Luck, Skill, and Investment Performance %D 2009 %R 10.3905/JPM.2009.35.2.131 %J The Journal of Portfolio Management %P 131-134 %V 35 %N 2 %X 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 %U https://jpm.pm-research.com/content/iijpormgmt/35/2/131.full.pdf