Granite Group Advisors -


2018-02-13 :: Actively owned stocks beat passively owned shares in the downturn
Bloomberg Tuesday, February 13, 2018 12:25:56 PM (GMT)

13 Feb '18 7:25 AM



Bloomberg reported that differentiated bets on stocks helped equity mutual funds beat benchmarks for the 29-Jan through 6-Feb period, with those in the large-cap growth style doing best. It adds that by one measure hedge funds only fell by a third of the slide registered by the S&P 500 over the period.
The article argues that a key to muting losses during the market's slide was better returns on popular stocks, with one sell-side firm's basket of most-loved shares outperforming the S&P during the drop. It adds that this factor may indicate that managers agree that fundamentals remain healthy.
It notes that stocks with the highest active ownership beat those with the highest passive ownership by ~150bp, a possible effect of active managers taking advantage of falling prices to add to their favorite positions against ETF investors looking to exit stocks during the selloff.

Reference Links:

ยท  Bloomberg


linked in facebook blog