Apple Cements Status as the Only Stock That Matters for Managers
- Missing Apple rally is one reason why stock pickers did poorly
- Rotation out of tech giants seen helping active funds to shine
This article is for subscribers only.
Apple Inc.’s unprecedented market weight creates headaches for stock managers when it rallies: They never own enough of it. That dynamic played out vividly in the third quarter.
Only 27% of large-cap mutual funds beat their benchmarks in the span, the poorest showing for any third quarter since Bank of America Corp. began tracking the data in 1991. While other factors contributed to the dismal performance, strategists including Savita Subramanian highlighted underexposure to Apple as a key culprit.