Chart o’ the Day: One Tough Year for Stock Picking

Remember that time, in December, when everyone was like “This is going to be the year where stock-picking works,” because “correlations are falling” and “dispersion of returns are rising” and blah-beddy-blah-blah?

Nope!

This is like the hardest f***ing year ever for active stock-picking managers. Especially the core managers (growth and value) who make up so much of the large cap universe. Here’s Bank of America Merrill Lynch’s Equity and Quant Strategy team recapping the first half of 2014 so far…

Results overall for the1H were even worse, as managers were likely caught off guard by some of the style reversals in the market. Just 19% of managers have beaten the benchmark, with only 12% of Growth managers and 9% of Core managers outperforming.

Screen Shot 2014-07-15 at 9.57.17 AM

This horrendous aggregate performance has occurred even in the context of correlations having fallen back down to their historic average, high correlations being the central complaint scapegoat of every mutual fund manager from Boston to Los Angeles.

Screen Shot 2014-07-15 at 10.03.43 AM

 

And it didn’t even help at all.

So no, 2014 is not the “year of active management” and it’s not the Summer of George either.

Sorry.

Source:

Why they did what they did: 1H14
Bank of America Merrill Lynch – July 9th 2014

 

 

What's been said:

Discussions found on the web
  1. Jeff commented on Nov 18

    .

    ñïàñèáî çà èíôó.

  2. morris commented on Dec 05

    .

    ñïñ çà èíôó.

  3. Chris commented on Dec 05

    .

    ñïñ çà èíôó!!

  4. andy commented on Dec 20

    .

    ñýíêñ çà èíôó.

  5. w88 commented on Sep 21

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  6. pinewswire.net commented on Sep 22

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  7. bitcoin era reviews 2020 commented on Sep 23

    … [Trackback]

    […] Here you can find 35942 additional Info to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  8. kid commented on Sep 25

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  9. 먹튀검증 commented on Sep 26

    … [Trackback]

    […] There you can find 54778 more Info to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  10. blazingtraderapp.com commented on Oct 03

    … [Trackback]

    […] There you will find 35153 more Information to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  11. Instagram Marketing commented on Oct 10

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  12. príjmy z aplikácií commented on Oct 26

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  13. cc shop online commented on Oct 31

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]

  14. td easyweb commented on Nov 25

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2014/07/15/chart-o-the-day-one-tough-year-for-stock-picking/ […]