Picking above-average managers delivers superior returns. Thank you Mercer! [The Skeptic's Guide to Investment Management #4]

Episode notes

Welcome to the Skeptic’s Guide to Investment Management. In each episode, we examine one industry publication through a skeptical, logical, evidence-based lens, with the help of Tim McGlinn , ex-investment consultant, portfolio manager and professor of finance, and founder of the TheAltView. We discuss a 2025 Mercer report claiming that adding a 20% allocation to private investments (venture capital, private equity, real estate, etc.) could boost target-date fund expected returns by 1% (7.1% vs. 6.1%). The catch: Mercer assumes public markets earn plain market returns, while private assets magically get “above-average manager” performance forever - because everyone’s an above-average driver. Tim also highlights Mercer’s conflict of interest as a consultant that sponsors private equity funds, plus ERISA’s heavy fiduciary burden on employers, making glossy sales pitches even more problematic. Key takeaway: we’re not all above average drivers or fund pickers. Link to Tim’s original article: TheAltView SGIM is an Investology podcast series,

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