Active managers in both the mutual and hedge fund industries
are badly underperforming their peers, and they have a mutual malady: heavy
ownership of flailing tech giant Apple. The
Cupertino, Calif.-based maker of electronic gizmo wizardry is the fourth-most
owned company by the top 50 mutual funds and the fifth-most owned by hedge
funds.
With Apple shares down 16 percent this year, it's played a
heavy role in the inability of active managers to beat the basic Standard &
Poor's 500 benchmark.
"The deterioration in performance really commenced
after March," Thomas J. Lee, chief market strategist at JPMorgan Chase,
said in an analysis. "This is when cyclicals began to meaningfully
outperform defensives, and the underperformance has worsened steadily since….”
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