Mega cap resurgence hurt active stock pickers in September, BofA says
SPY•About 56% of large-cap funds underperformed in September as the cap-weighted S&P 500 beat the equal-weighted index by nearly 5 percentage points, BofA analysts said. Nearly 60% of small-cap funds outperformed their benchmarks.
1. Large-cap funds lagged
About 56% of large-cap funds underperformed in September, when the S&P 500 fell 0.45%, BofA analysts said. The cap-weighted index beat the equal-weighted index by nearly 5 percentage points as market leadership shifted back toward mega caps.
2. Small-cap funds led
Overall, 44% of funds outperformed their Russell benchmarks, slightly below the 46% average monthly hit rate. Growth funds had the weakest large-cap results, with 63% underperforming; nearly 60% of small-cap funds beat their benchmarks.
