How Many Active Managers Outperform Their Benchmarks? via Barry Ritholtz
Over the past 12-month period, market conditions have been highly favorable for growth-style investing, with growth indices across market-cap ranges returning higher than the value indices. During the same period, the majority of actively managed value funds in the mid- and small-cap categories fared better than their benchmarks. The opposite can be seen with the growth funds, which underperformed their benchmarks.
During the same period, the majority of actively managed funds invested in international developed and emerging markets outperformed their respective benchmarks.
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On the other hand, the majority of actively managed funds invested in long-dated government and credit categories outperformed their respective benchmarks over the 12-month period, marking a sharp reversal of fortunes from six months prior.
The collapse of the energy market had repercussions for the junk bond market, with all headline high-yield indices posting negative returns. During the period of volatility, approximately two-thirds of actively managed high-yield funds delivered higher returns than the benchmark.
How Many Active Managers Outperform Their Benchmarks?
Source: S&P Indices