Active Funds Enjoy a Great Year Thanks to Cash, Not Stock Picks
- Growth funds trail benchmark as aversion to Apple backfires
- Managers are warming up to high-growth, high-valuation stocks
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Professional stock pickers are beating the market in a scale not seen in more than a decade. That’s the good part of the story. The underwhelming part: They did it by parking money in cash, instead of picking the right companies.
Roughly 50% of actively managed mutual funds are ahead of their benchmarks this year, compared with the 10-year average hit rate of 34%, according to data compiled by Goldman Sachs Group Inc. That’s their best showing since 2009.