Active Funds Underperform in 2011

This report released by Standard & Poor’s showed that 84% of active US managers underperformed their respective S&P benchmark indices in 2011.  Not surprisingly, S&P also summarizes that the only consistent data point observed over a five-year horizon is that a majority of active equity and bond managers in most categories lag their comparable benchmark indices.  The S&P report cites other data points further indicting active management such as survivorship bias, style drift among managers, and underperformance during bear markets (periods which should favor active management given their ability to move to cash, or seek more defensive positions).

Link  |  S&P Indices Versus Active Funds (

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