Faced with market rough patch, stock pickers fail to shine

Faced with market rough patch, stock pickers fail to shine
Growth managers fared the worst, with only 13% beating benchmark for October.
NOV 02, 2018

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. https://cdn-res.keymedia.com/investmentnews/uploads/assets/graphics src="/wp-content/uploads2018/11/CI117726112.PNG" 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.

Latest News

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

Advisor moves: Raymond James, Baird add significant teams in latest recruiting push
Advisor moves: Raymond James, Baird add significant teams in latest recruiting push

Independent broker-dealers snap up experienced advisors as competition for established practices intensifies.

Wells Fargo names COO Scott Powell as its next chief risk officer
Wells Fargo names COO Scott Powell as its next chief risk officer

Derek Flowers, a nearly 30-year veteran, is set to retire in mid-January, handing the reins to the executive who helped lead the bank's regulatory turnaround.

Ameriprise runs advisor ads on ESPN, Golf Channel, CBS
Ameriprise runs advisor ads on ESPN, Golf Channel, CBS

The campaign spans broadcast TV and streaming, as the brokerage faces slowing client net flows and an $8.1 billion advisor team that left to launch an RIA this month.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains