Homepage / Investment / Stock picking is back: Active managers having best year since bull market began
Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software? The Power of Business Software The Benefits of a Software Board Online Data Room Review The Importance of Tech Knowledge Improving Accuracy of Financial Data Online Business Records – How to Keep Your Online Business Records Accurate and Secure What is a Board Portal De? DealRoom Review – A Review of VDR Software M&A Due Diligence for Private Companies The Virtual Data Room Review


Stock picking is back: Active managers having best year since bull market began

Active managers, after years of suffering through a low-volatility stock market that has made their lives miserable, are finally showing signs of life.

The first half of 2017 saw 54 percent of large-cap managers beat their benchmarks. That number may not sound remarkable on its face but is actually the first time a majority achieved the feat in the first half since 2009, when Bank of America Merrill Lynch first started tracking the performance. Sixty percent beat in the second quarter, the best since the first quarter of 2009.

Low volatility has long been the enemy of stock pickers, and that story hasn’t changed much this year. The most conventional measure, the CBOE Volatility Index, has been mired around multi-year lows for much of 2017. However, several other factors have colluded to make life easier.

For one, fund managers have simply gotten better at sector selection.

They set a record for overweight positions in the red-hot tech sector, which gained 17.2 percent in the first half. They also had higher than normal allocations to discretionary and health care, the second- and third-best sectors. Managers are holding record-low positions in weak-performing staples, utilities and telecom shares, according to BofAML.

Another factor has been correlations, or the tendency stocks have had to move up and down together during the eight-year bull market run. High correlations make it more difficult for active managers to find price discrepancies needed for outperformance, and correlations have come down this year.

Finally, style has helped — 71 percent of value managers and 64 percent of growth managers have outperformed. Core managers, who blend both styles, saw just a 36 percent outperform rate.

One blip in the active outperformance has come from small-caps, which have seen just 42 percent of managers outperform. June was a particularly difficult month, with an outperform rate of just 18 percent.

The ability of active fund managers to beat basic benchmarks like the various S&P and Russell indexes is important at a time when investors increasingly are turning to ETF-based passive strategies.

Exchange-traded funds track the indexes themselves and generally come with significantly lower fees. Even while active managers’ performance improved this year, investors piled a fresh $245 billion of new money into ETFs during the first half, bringing total assets to just under $3 trillion, according to State Street Global Advisors and XTF.

Investors have pushed $702.9 billion into passive strategies over the past 12 months while pulling $278.7 billion from active funds over the past 12 months, according to Morningstar data through May. Included in that total is $308.3 billion of inflows to passive stock funds and $263.6 billion in outflows to active equity funds.

WATCH: Active? Passive? One pro says investors will be doing a little of both.

Source: Investment Cnbc
Stock picking is back: Active managers having best year since bull market began

Comments are closed.