Return Attribution: What's the point?

There is quite a lot of material dedicated to return attribution. At it’s core, I’m trying to find out how this is useful to anyone.

As an Example: say Benchmark Port. holds 1 stock, stock A. 2 managers are tasked with outperforming the benchmark.
-Manager #1 does in depth fundamental analysis and ends up choosing Stock B for his portfolio.
-Manager #2 is a Chimpanzee who presses a key on the computer which chooses Stock B as well.

Stock B outperforms the Benchmark by 5%.

We can spend endless hours slicing and dicing the 5% into buckets and categories, but why does it matter and who cares? It tells us nothing.

Everyone knows that Luck is a huge factor, probably the most prominent one. For every 1 reason a Manager chooses a stock there can be 1,000 unrelated reasons why that decision turns out to be outperforming or underperforming.

It all seems like a lot of nuanced BS to me.

It would MAYBE make sense if the investment thesis is tied to the attribution. For example, Manager A selects 10y Bond ABC bc they believe 10y rates will fall due to very specific reason XYC. And that exact thesis plays out…but even then

Attribution is one technique to gauge the performance of manager in hf or pe.


Nudge nudge, wink wink.

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