Less than a Third of Large Cap Funds Outperformed in Q1

The first quarter of this year has definitely frustrated just about everyone. The sectors that large cap mutual fund managers were overweight (like Consumer Disc) were the big under-performers while the sectors no one wanted anything to do with (Utilities, anyone?) absolutely kicked ass.

Merrill’s Equity and Quant Strategy team tells that less than a third of large cap managers were able to beat the Russell 1000 benchmark in the first three months of the year. It was particularly bad for the value managers, 88% of whom missed the mark.

Over the last three months, 29% of managers beat the benchmark. Core managers did best with 31% beating the benchmark. Value manager had a 12% hit rate. 14% of Growth managers beat the benchmark.

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That’s okay – you’ll get ’em next time, champ!


Growth/Value reversal caught style managers off guard
Bank of America Merrill Lynch – April 9th 2014

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