PT - JOURNAL ARTICLE AU - Bradford Cornell TI - Luck, Skill, and Investment Performance AID - 10.3905/JPM.2009.35.2.131 DP - 2009 Jan 31 TA - The Journal of Portfolio Management PG - 131--134 VI - 35 IP - 2 4099 - https://pm-research.com/content/35/2/131.short 4100 - https://pm-research.com/content/35/2/131.full AB - 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