Performance Trickery, part 3

Success is hard to come by for active managers, as readers of our SPIVA reports know well.  Sometimes what appears to be stock selection skill is in fact simply a byproduct of style drift across the capitalization scale.

A majority of large-cap active managers outperformed the S&P 500 only 3 times in 19 years of SPIVA data.  It’s surprising, therefore, to see that 68% of midcap managers outperformed the S&P MidCap 400 Index last year (and 62% of small cap managers outperformed the S&P SmallCap 600).  In fact, a majority of midcap managers outperformed in each of the past three years.  In those same years, an average of 66% of large cap managers underperformed the S&P 500.

Read the full whitepaper now at the link below