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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
Hong Kong Dollar, Chinese Yuan and US Dollar Banknotes As Currency Peg Intervention From HKMA Continues Into Third Day
Photographer: Paul Yeung/Bloomberg

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.