Faced with market rough patch, stock pickers fail to shine

Growth managers fared the worst, with only 13% beating benchmark for October

Nov 2, 2018 @ 11:42 am

By Bloomberg News

Stock pickers have been promising for years that once the equity market hit a rough patch, they would have a chance to prove their worth. Maybe not.

Stocks had their worst month in seven years in October and less than half, or 42%, of actively managed mutual funds that buy large-cap U.S. equities beat the S&P 500 Index, according to data compiled by Bloomberg.

Growth managers — who tend to own some of the most popular technology companies — fared the worst, with only 13% beating the benchmark for the month. Shares of tech stocks took a drubbing during the month.

Value managers did better, with 67% outperforming. They typically invest in financial and health-care stocks.

The numbers were based on results from 682 funds tracked by Bloomberg.

(More: Stocks are doing OK. Asset managers' stocks? Not so much)

Early results suggest it wasn't a great month for equity hedge funds either. According to an Oct. 30 report from Morgan Stanley, American equity hedge funds lost 7.2% for the month. That compares to a decline of 6.8% for the S&P 500, including dividends.

0
Comments

What do you think?

View comments

Recommended next

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print