Fund managers’ stock picking accuracy hits 2-year low in July as prices decouple from data, Bank of America says

  • Date: 08-Aug-2020
  • Source: Markets Insider
  • Sector:Financial Markets
  • Country:GCC
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Fund managers’ stock picking accuracy hits 2-year low in July as prices decouple from data, Bank of America says

Mutual fund managers largely underperformed their benchmarks in July as macroeconomic focus blocked out stocks' dismal fundamentals, Bank of America said Thursday.

Large-cap active funds' hit rate was just 28% last month, its worst in two years, as managers failed to find names outperforming the market.

Managers largely ignored the month's best-performing sectors including consumer staples and utilities stocks, the bank said.

Growth strategies across small-, mid-, and large-cap funds outperformed core and value approaches as investors remained crowded in safer plays.

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Mutual fund managers faltered throughout July as neglected sectors posted unexpected gains.

Large-cap active funds' hit rate “” the share of stock picks outperforming the broader market “” reached just 28% last month, Bank of America said Thursday, its worst reading in two years. That comes