Letters to the Editor
To the Editors:
I just finished reading Recipe for Picking Winners: Add Time to a Pinch of the Past, by Mark Hulbert in the June 2007 issue of the AAII Journal. I always appreciate Mr. Hulberts analyses. However, I thought the conclusion reached regarding risk adjustment did not agree with the dataspecifically, the conclusion he reaches is that risk adjustment only helps over the short term. Looking at the data presented in Figure 1 of the article, risk adjustment never improves the resultsexcept with the 15-year prior record and only there for the contrarian view (trying to predict based on the results from the worst performers over the past 15 years). This is probably statistically insignificant, anyway.
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