Once Again, It’s During a Stock Rout That Active Managers Shine
- About 60% of mutual funds beat benchmarks, most since 2018
- Question is, are smaller losses enough to lure investors back?
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After a decade-long uphill battle against passive investing, active funds are getting a rare moment of respite, courtesy of the worst equity sell-off since 2018.
About 60% of large-cap mutual funds beat their benchmarks as the S&P 500 tumbled into a correction in February, the best hit rate in two years, according to data compiled by Bank of America Corp. The outperformance was achieved when the average fund only fell 7.8% over the stretch in question.