Bad Times for Active Stock Pickers

Bad Times for Active Stock Pickers

Almost no active managed funds have beaten the market/their benchmarks over the past 15 years.

Some 66 percent of large-cap active managers failed to top the S&P 500 in 2016. Performance actually got worse over longer time frames, with more than 90 percent missing benchmarks over a 15-year period. For the first time, the scorecard tracked 15-year performance to capture what it considers a "complete market cycle."

In that period, 92.2 percent of large-cap managers missed their marks, while the number was 95.4 percent for mid-caps and 93.2 percent for small-caps. It's probably no wonder, then, that more than 58 percent of U.S. equity funds either folded or merged during the 15-year time frame.