Stock Pickers Missed Bank, Tech Reversals and Are Paying Dearly
- Active funds suffer amid defensive stance in top-heavy market
- It’s a big departure from 2022’s standout performance
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Professional stock pickers who feasted on last year’s volatility were positioned for more of the same heading into 2023. They got something else entirely, and are paying for it in their returns.
Only one in three actively managed mutual funds was ahead of equity benchmarks during the first quarter, the worst performance since the end of 2020, data compiled by Bank of America Corp. show. That contrasts with a hit rate of 47% in 2022 that was the best in five years.