Maybe they made good decisions and lost money. Let&#x27;s say I have a million to invest. I value an expert making investment decisions with that million at $10,000 per year. There are many others like me so the manager collects many millions to make decisions with. They doesn&#x27;t guarantee the money will be made, they just guarantee they will make the best decisions they are able to with that money which has higher expected return than me making those decisions.<p>It&#x27;s in nature of our world that very often good decisions lead to losses.