The Chimp That Beat Wall Street

Why It Matters

The story highlights the limits of active management and the role of luck and market momentum during speculative bubbles, reminding investors to be cautious about attributing skill to short‑term outperformance. It also underscores the importance of diversification and skepticism toward performance claims in frothy markets.

Summary

In 1999 at the height of the dot‑com bubble, a chimpanzee named Raven reportedly selected a portfolio by throwing darts at a board of 133 internet companies. That dart‑picked portfolio returned roughly 213% that year, ranking Raven the 22nd best money manager in the U.S. by performance. The anecdote has been cited widely as a humorous illustration of how extreme market conditions and broad momentum can reward random selection. It underscores how exceptional short‑term returns during bubbles can obscure skill.

Original Description

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